Arbitration is an alternative way to resolve legal disputes outside the courts. An impartial arbitrator hears the case and makes a binding decision. This process can resemble a court hearing where parties present evidence and testimony, but the process occurs in a private setting.

Arbitration is often used to resolve contract disputes. The majority of civil disputes can be resolved through arbitration except those involving issues like succession or taxes.

While people who sign a contract with an arbitration agreement are bound by it, non-signers can be bound in some cases. Colorado courts recognize seven situations where this can happen:

1. When the arbitration clause is listed in another agreement.

2. When the non-signer agrees to the arbitration terms.

3. When the non-signer acts on behalf of a signer (agency).

4. When the non-signer is treated as the same entity as a signer (alter ego).

5. When the non-signer benefits from the agreement and is stopped from avoiding arbitration (estoppel).

6. When the non-signer takes over from a signer (successor).

7. When the non-signer is considered a direct beneficiary of the agreement (third-party beneficiary).