Install 7zip and run command line utility 7z.exe without parameters:
Usage: 7z <command> [<switches>...] <archive_name> [<file_names>...]
[<@listfiles...>]
<Commands>
a: Add files to archive
b: Benchmark
d: Delete files from archive
e: Extract files from archive (without using directory names)
l: List contents of archive
t: Test integrity of archive
u: Update files to archive
x: eXtract files with full paths
<Switches>
-ai[r[-|0]]{@listfile|!wildcard}: Include archives
-ax[r[-|0]]{@listfile|!wildcard}: eXclude archives
-bd: Disable percentage indicator
-i[r[-|0]]{@listfile|!wildcard}: Include filenames
-m{Parameters}: set compression Method
-o{Directory}: set Output directory
-p{Password}: set Password
-r[-|0]: Recurse subdirectories
-scs{UTF-8 | WIN | DOS}: set charset for list files
-sfx[{name}]: Create SFX archive
-si[{name}]: read data from stdin
-slt: show technical information for l (List) command
-so: write data to stdout
-ssc[-]: set sensitive case mode
-ssw: compress shared files
-t{Type}: Set type of archive
-u[-][p#][q#][r#][x#][y#][z#][!newArchiveName]: Update options
-v{Size}[b|k|m|g]: Create volumes
-w[{path}]: assign Work directory. Empty path means a temporary directory
-x[r[-|0]]]{@listfile|!wildcard}: eXclude filenames
-y: assume Yes on all queries
I think you can use -o option.
Also I do so usually:
select target folder (see Change folder action)
and use such command line:
7z.exe x "c:\Full Path\with subfolders\MyArchive.arj"
This command forces extraction into current folder