The parties to a dispute refer the dispute (or the Court refers the dispute) to arbitration by an Arbitrator. The Arbitrator reviews the evidence in the case (including, if agreed, the evidence of the parties in person) and comes to a decision that is legally binding on the parties and enforceable by the Courts.
All wars are follies, very expensive and very mischievous ones. In my opinion there was never a good war or a bad peace. When will mankind be convinced and agree to settle their difficulties by arbitration?