In an arbitration proceeding. . . (Business Law Question)?

Question

In an arbitration proceeding, the arbitrator need not be a judge or even a lawyer. How, then, can the arbitrator’s decision have the force of law and be binding on the parties involved?

Answer 1

Before arbitration, both parties sign contracts agreeing to abide by the arbitrator's decision. If someone attempts to bring suit in court about the subject matter decided in arbitration, the court will refuse to hear the case, since it is already decided.

Answer 2

Generally, the parties agree to the arbitrator, or forum and that the arbitrator's decision will be binding.  It may have even been agreed to in the contract that is in issue prior to there ever being a dispute.