What is Arbitration in Freelancing World?

People do jobs at freelance sites in order to earn some money. But some people are not successful in this regard. There are some immature people who think that they can make thousands of dollars on the internet in very quick time and without doing any work. Some people are even willing to steal money from other people on the internet if they get that chance.
This is so immature and bad thinking but unfortunately, there are some people like these who join freelance site. If these people win any project then the chances for a dispute between buyer and that service provider are high. New service providers need to be smart but not over smart.
The biggest problem faced my buyers with new service providers is that the work is not completed within the given time period. In such case, buyer will enter the project in arbitration as the buyer did not got the work with in the given time period.
Arbitration is called when ever there is a dispute between the buyer and the service providers. Most of the time, the buyer enters the project in arbitration. In arbitration, the work on the project is stopped and the freelance site staff investigates. After investigation, the freelance staff decides who is right and who is wrong. In case the buyer wins the arbitration, then they don't have to pay the service provider.
Results of arbitration are always bad. Someone will get a bad feedback. People can avoid arbitration if they can work honestly. Also, there are few people who thing that they can earn money on the internet without doing much or any work. This concept is very disturbing. Few people are even willing to steal others money that is if they get a chance to do it.
How sad it is. I wish people only believe in legitimate ways to make money rather than illegal ways. Anyway, I hope to see a arbitration free environment for all freelancing sites.