What is an essential characteristic of arbitration?

An essential characteristic of arbitration is that it uses neutral parties to resolve disputes. In arbitration, an impartial third party, known as an arbitrator, is appointed to listen to the arguments, evaluate the evidence, and make a decision regarding the dispute. This process contrasts with litigation, where a judge or jury decides the outcome of a case.

The use of neutral parties helps to create a fair and unbiased environment for resolving conflicts, as these arbitrators are typically experts in the subject matter of the dispute and are trained to act impartially. This characteristic is vital because it instills confidence in both parties that their case will be assessed fairly, leading to a resolution without the need for a more formal and often lengthy court process.

Other options don't accurately describe arbitration: it is generally legally binding regardless of whether both parties agree beforehand, does not usually involve multiple court appearances, and does not require a judge as the decision-maker, which distinguishes it from traditional judicial proceedings.