One of the most important types of Alternative Dispute Resolution is Arbitration. The main difference between arbitration and other methods is that it has an arbitrator. Arbitrator hears all the statement and checks all the evidence if any and then makes a neutral decision.So in a way the arbitrator works like a judge that works in court of law. All the trial is similar to the court system except that it is not that formal. There is little to no out of court negotiation present in this type of method. An arbitrator can make any decision and the parties are bound to accept that decision.