What Does Arbitration Mean?

Arbitration is a term that conveys that idea of finding the solution of a problem by a third person with whose decision both the parties that are involved in the dispute are agreed with.

The term is quite often used in the legal matters where the parties settle their disputes outside the court and most of the times save a big sum in court fee. They appoint an arbitrator who is a parson of integrity and both the parties have faith that he will not take side of a particular party.

Sometimes the parties deliberately appoint an arbitrator because the decision delivered by the arbitrator are not often binding and if one of the party finds that the decision can harm his interest he is free not to comply with the decision.

Not to disagree in any way w/ knutters answer:  as I explain it arbitration is when a plaintiff & a respondent cannot come to a "meeting of the minds" on a particular issue an arbitrator is asked usually through the courts to intervene...this person is usually a retired judge, retired attorney, or the like.  this is a less expensive way to go to court.  this person will try to help each side give/take a  little until an understanding can be arranged, hence a "meeting of the minds".  good luck to you...I have been through arbitration twice and I knew as I was right and was awarded everything I asked for.  and the other party then paid all court costs & filing fees.  just be sure to have docs. To back you up!♥

Arbitration Ar`bi*tra"tion, n. [F. Arbitration, L. Arbitratio, fr. Arbitrari.]

The hearing and determination of a cause between parties in controversy, by a person or persons chosen by the parties.
Note: This may be done by one person; but it is usual to choose two or three called arbitrators; or for each party to choose one, and these to name a third, who is called the umpire. Their determination is called the award. --Bouvier
Arbitration bond, a bond which obliges one to abide by the award of an arbitration.
Arbitration of Exchange, the operation of converting the currency of one country into that of another, or determining the rate of exchange between such countries or currencies. An arbitrated rate is one determined by such arbitration through the medium of one or more intervening currencies.

I have a furniture set from rent a center can I be arrested if I don't pay or give it back

It means that the decisions are made by lawyers  and it can not be taken to trial nor can you contest by getting a trial, basically you wave the right to a trial.