Arbitration is best for cases where the

Arbitration is best for cases where the parties want another person to decide the outcome of their dispute for them but would like to avoid the formality, time, and expense of a trial. The word “arbitration” is used to cover two quite different processes. The first is where the courts use more informal procedure to hear cases; this is the way proceedings in the commercial court of the Queen’s Bench Division are described. The second meaning of the word “arbitration” is where the parties agree to submit their claims to private arbitration; this type of arbitration that is relevant to alternative dispute resolution, as it another way of resolving a dispute without the need for a court case.
Arbitration Act 1996 “The object of arbitration is to obtain the fair resolution of disputes by an imperial tribunal without unnecessary delay or expense.
For example; Workers of Bob's Marketplace feel like they don't get enough benefits. The union gets in touch with the management of Bob's and the management agree to arbitration instead of risking a long strike. In arbitration it is decided that if an employee works more than 30 hours/week they are entitled to a better health care package

This is where a neutral mediator helps the parties to reach a compromise solution. The role of a mediator is to consult with each party and see how much common ground there is between them. He will then speak to each parties in private and hear what they have to say about the situation and then suggest it. However a mediation can asked for an opinion of the mediator and in this case the mediation becomes more of an evaluation.
Family Law Act 1996 encourage the use of mediation.
For example; The wife want to get divorce and they both have children so they both go to a mediator to short things out and see if it is the best thing to do because there is children involve.