It's essentially a private court, where the parties ask a third party to quickly and cheaply settle a disagreement. When used responsibly, it's great. It's ba

It's essentially a private court, where the parties ask a third party to quickly and cheaply settle a disagreement. When used responsibly, it's great. It's bad when a corporation requires arbitration (at the arbiter they choose -- which is a conflict of interest) and bans using the public government court system, as part of the terms of service of the product.