What is the function of arbitration in dispute resolution?

Arbitration serves as a method of alternative dispute resolution where an impartial party, known as an arbitrator, issues a binding decision regarding the conflict between the parties involved. This process involves the presentation of evidence and arguments from both sides, leading to a resolution that is enforceable by law, thus providing a definitive outcome to the dispute. The binding nature of arbitration ensures that both parties must adhere to the arbitrator's decision, offering a conclusive end to the disagreement which is particularly important in contractual disputes.

The other options focus on aspects of communication, record-keeping, or negotiation that do not align with the key characteristic of arbitration as a binding resolution process. While informal dialogue and renegotiation can be useful in resolving disputes, they do not provide the finality or enforceability that arbitration does. Similarly, documenting the disagreement lacks the proactive resolution aspect that arbitration embodies.