In the 21th century, its important role in international commercial disputes has established arbitration as the preferred form of dispute resolution. Because commercial disputes have become more complicated and varied with their quantitative increase, it is important that they be settled in a reasonable and rapid manner. Alternative Dispute Resolution (ADR) is now regarded as one of the most effective dispute resolution methods for the settling of commercial disputes and merits notice. Arbitration is a form of dispute resolution in which two parties agree to have their dispute resolved by one or more arbitrators and thereby avoid what could be costly and time-consuming court battles. Often contracts mandate that disputes be settled through arbitration. These arbitration clauses also frequently prohibit plaintiffs from banding together to bring an action on behalf of a larger class. An arbitration agreement is an agreement by parties to summit to arbitration all or certain disputes which have arisen or which may arise between them with respect to their defined legal relationship, whether contractual or not. According to the Supreme Court, general elective arbitration clauses may be considered valid in light of all the relevant facts. Arbitration has been the subject of a great deal of research and the scope of effect in arbitration agreements is a promising avenue for future research.