Final answer:
The statement is true; parties entering into arbitration are agreeing to abide by the binding decision made by a neutral arbitrator. Arbitration is an alternative dispute resolution method meant to be quicker and often less expensive than traditional court litigation.
Step-by-step explanation:
Parties that agree to submit disputes to a neutral party who will ultimately make a binding decision to resolve the dispute are indeed agreeing to participate in what is known as the arbitration process. This is true. Through arbitration, the parties agree in advance to abide by the decision made by the arbitrator, a neutral third party whose ruling is generally final and legally binding. This is an alternative to the traditional court system and is designed to be a faster, more confidential, and often less expensive way to settle disputes. Arbitrators are typically experts in the relevant field of the dispute, and their decisions are based on the evidence and arguments presented by both sides. Accessible and impartial dispute resolution mechanisms such as arbitration ensure that justice is delivered by competent and ethical representatives. Neutral decision makers are crucial in this process as they provide a decision that both parties have agreed to honor. Unlike other forms of dispute resolution, such as negotiation or mediation, arbitration ends with a decision that is imposed on the parties, which can be enforced legally if necessary.