Alternative dispute resolution (ADR) is a process for resolving disputes between two or more parties without going to court. ADR can be used for a variety of disputes, including contract disagreements, wage disputes, personal injury claims, and property damage claims. The most common types of ADR are mediation and arbitration. Mediation is a process in which a neutral third party (the mediator) helps the parties to reach an agreement. The mediator does not make decisions or impose solutions; rather, he or she helps the parties to communicate more effectively and to explore different options for resolving their dispute. Arbitration is a process in which a neutral third party (the arbitrator) hears both sides of the dispute and then makes a decision. Arbitration is similar to mediation, but the arbitrator has the power to make binding decisions.