It has been more than 50 years since the declaration and commencement of the local arbitration system. The frequency of usage did not decrease with development of the society. Arbitration system is an efficient dispute resolution. The purpose of this research probes into the situation of local arbitration, and the perception and the difference between arbitration committee members and democracy to provide viable suggestions. Methods used in this research include 1.document analysis ¡Vto know the history of arbitration system, 2.individual case study interviews ¡Vfocus on individual case, 3.in-depth interview ¡Vfocus on the situation of arbitration executed. The results as follow as: 1. Cognitive consistency (1) Execution: it took more than 60 min. by each case. The types of cases tend to car accidents and two committee members attend mostly. (2) Case conditions: both sides filed alternative resolution less than twice and the other side is rational. (3) Cognitive of success factors: it is ineffective that arbitration through different way and people cannot know it immediately. The success factor is a compromise of both sides; and the failure factor is the individual insistence. The success arbitration is the suggestion of baseline from both sides. The negative effect is the external factor. (4) Cognitive of arbitration system: Agree with the limit of minimum female members. Councilors cannot be part-time committee members. The arbitration is related with experience but educational background. 2. Cognitive inconsistency (1) The case details: committee members consider they are sufficient understanding the case details, but people do not agree with them. (2) Numbers appropriateness of committee member: committee members consider it is a just number, but people consider it is an excess number. (3) The key factor of committee members: committee members consider the key factors are professionalism and passion; people consider the key factors are objective and fair. (4) Arbitration system is being substitute for justice: committee members agree with it, but people disagree with it.