Non-Binding Arbitration Law and Legal Definition

There can be two types of arbitration, binding arbitration and non-binding arbitration. In a non-binding arbitration, the arbitrator determines the rights of the parties to the dispute. However, neither party is bound by an arbitrator’s decision nor an arbitration award is issued. Subsequent to a non-binding arbitration, the parties to dispute can either pursue their claims through courts or by a binding arbitration.