What is the purpose of arbitration?

The purpose of arbitration is to use an arbitrator to settle a dispute. Arbitration is a form of alternative dispute resolution where an impartial third party, known as an arbitrator, is appointed to hear both sides of a conflict and make a binding decision. This process is typically used to resolve disputes outside of the court system, thereby providing a more efficient and often less formal means of resolving conflicts compared to traditional litigation. By relying on an arbitrator, parties can hope for a quicker resolution, privacy in the proceedings, and reduced costs associated with court litigation.

The other options do not fit the definition of arbitration. Settling disputes through litigation involves formal court procedures, which is not the essence of arbitration. Making legal decisions without a jury suggests a different judicial process, typically related to bench trials. Drafting legislative policies is completely unrelated to dispute resolution mechanisms and does not pertain to arbitration practices.