Arbitration is a private, out-of-court dispute resolution process—usually between parties to a contract—in which the dispute is resolved by one or more arbitrators rather than by judges and juries in the court system. Businesses often include an arbitration provision in the dispute resolution section of online agreements (terms of use) for consumer products and services.

In North Carolina, arbitration is governed by both federal and state laws. The Federal Arbitration Act (FAA) applies to arbitration agreements that involve interstate commerce, which can include online agreements for consumer products and services. Under the FAA, arbitration clauses are generally enforceable, and courts must enforce private arbitration agreements according to their terms. North Carolina has also adopted the Uniform Arbitration Act, codified in Chapter 1, Article 45C of the North Carolina General Statutes. This state law provides the framework for conducting arbitrations that are not covered by the FAA. It includes provisions on the arbitration process, such as the appointment of arbitrators, the conduct of arbitration hearings, and the confirmation, vacating, or modification of arbitration awards. Businesses in North Carolina often include arbitration provisions in their terms of use to ensure a more predictable and streamlined dispute resolution process, which is typically faster and less formal than court litigation. Consumers entering into contracts with such provisions should be aware that they are generally agreeing to resolve disputes through arbitration rather than through the court system.