Characteristics of Arbitration:

Voluntary: Parties must expressly agree to arbitrate in writing, or fall within the ambit of legislation that mandates arbitration in a given situation. If the parties have agreed to arbitrate, the court, on the motion of one of the parties to the agreement, will generally require the parties to submit the dispute to arbitration, unless it is found that the arbitration agreement is null and void, inoperative or incapable of being performed. 

Controlled: The parties and their counsel are able to control procedural aspects of the process, including the choice of neutral, timing and location of the hearing, as well as whom, other than the parties themselves, may be present.

Private: Arbitration is usually conducted in private.

Informal: Subject to the CAA, there are no prescribed procedural or evidentiary rules governing arbitration. The rules of procedure are established by the adoption of existing rules, by a negotiated arbitration agreement between the parties, or by the parties and the arbitrator.

Adjudicative: As in litigation, once a case has been presented by each side, the arbitrator issues a decision. Article 31 of the Code requires that an arbitral award shall be in writing, and that reasons be provided unless the parties have agreed that no reasons are required.

Binding/Non-Binding: All federal arbitration under the Commercial Arbitration Act is binding. Judicial review of an arbitral award is available only on limited grounds such as incapacity of a party; invalidity of an arbitration agreement; or that the award is in violation of law or public policy.