Arbitration

Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.

What is an example of arbitration?

An example of arbitration would be when two people who are divorcing cannot agree on terms and allow a third party to come in to help them negotiate. The act or process of arbitrating.

What is the purpose of arbitration?

Arbitration has four types of functions: resolving contractual disputes between management and labor, addressing the interests of different parties in bargaining situations such as public sector labor relations, settling litigated claims through court-annexed programs, and resolving community disputes.