What is the outcome of arbitration?

• A. Non-binding recommendation
• B. Binding award
• C. Court order
• D. Mediated agreement

Answer: (B)

Arbitration ends with a binding award. An arbitrator or panel reviews the dispute and issues a decision that both sides must follow. That award is enforceable like a court judgment, so the winning party can ask a court to compel compliance if necessary. This binding nature sets arbitration apart from mediation, where the outcome is typically a voluntary agreement created by the parties and not automatically enforceable as a court judgment. A court order isn’t the direct result of arbitration, though courts will enforce the arbitration award when needed.