Arbitration can be either binding or nonbinding. Binding arbitration is final and generally the outcome cannot be appealed. Nonbinding arbitration is generally mandated by the courts and can be appealed. In nonbinding arbitration, the disputing parties put their case before an impartial third party who renders an opinion or recommendation, which the parties may choose, or not choose, to accept. Furthermore, arbitration can be a wholly private process, based on the provisions contained in the contractual agreement that informs the arbitration procedures, or "courtannexed." If the process is "courtannexed" then the arbitration takes place within the court system and is governed by local court rules for arbitration.
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