Which term describes a method where an arbitrator listens to both sides of a dispute and renders a decision?

The term that describes a method where an arbitrator hears both sides of a dispute and provides a binding decision is arbitration. In this process, the parties involved present their cases to the arbitrator, who acts as a neutral third party. Unlike mediation, where a mediator facilitates discussion and helps the parties reach a mutually agreeable resolution without making a decision, arbitration involves a formal hearing where evidence and arguments are presented, allowing the arbitrator to make a final ruling. This decision is typically binding, meaning that the parties agree to accept the outcome without the option for appeal, ensuring a resolution to the conflict. In comparison, litigation involves court proceedings where a judge or jury makes the final decision, while negotiation focuses on bargaining between the parties without third-party intervention.