Definition

1. Noun:
   • The process of resolving a dispute by an impartial third party: Arbitration is a method of settling disagreements outside of court, where a neutral person or panel (the arbitrator) makes a binding decision after hearing both sides.
   • The act of giving an authoritative judgment: It refers to the act of deciding an issue as an arbiter, providing a final and decisive resolution.

Usage

Arbitration is a formal alternative to litigation. It is commonly used in commercial, labor, and international disputes. The parties involved agree in advance to accept the arbitrator's decision as final.

Examples

• Noun:
  • The contract included a clause stating that any disputes would be settled by arbitration.
  • To avoid a lengthy court case, the two companies opted for binding arbitration.
  • The union and management submitted their disagreement to arbitration.

Advanced Usage

• Binding Arbitration: A process where the arbitrator's decision is final and legally enforceable on all parties.
  • The parties entered into binding arbitration, forfeiting their right to sue in court.
• Non-binding Arbitration: A process where the arbitrator's decision serves as a recommendation, which the parties may accept or reject.
  • They used non-binding arbitration to get an expert opinion before negotiating a final settlement.

Variants and Related Words

• Arbitrate (verb): To act as an arbitrator; to settle a dispute.
  • A retired judge was asked to arbitrate the disagreement.
• Arbitrator (noun): The neutral person who conducts the arbitration and makes the decision.
  • The arbitrator reviewed all the evidence before making a ruling.
• Arbitral (adjective): Pertaining to arbitration or an arbitrator.
  • The arbitral award was issued last week.

Synonyms

• Adjudication: The formal process of judging a case and making a ruling.
• Mediation: A related but distinct process where a neutral third party helps disputing parties reach a voluntary agreement (the mediator does not impose a decision).

Related Phrases

• To go to arbitration: To enter into the arbitration process.
  • When negotiations failed, they had no choice but to go to arbitration.
• Arbitration agreement/ clause: A contract provision that requires disputes to be resolved through arbitration.
  • Before signing the lease, check the arbitration clause.

Noun

1. the act of deciding as an arbiter; giving authoritative judgment
   • they submitted their disagreement to arbitration
2. (law) the hearing and determination of a dispute by an impartial referee agreed to by both parties (often used to settle disputes between labor and management)