arbitration

American  

[ahr-bi-trey-shuhn] / ˌɑr bɪˈtreɪ ʃən /

noun

1. the hearing and determining of a dispute or the settling of differences between parties by a person or persons chosen or agreed to by them.

   Rather than risk a long strike, the union and management agreed to arbitration.

2. International Law. the application of judicial methods to the settlement of international disputes.

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arbitration British  

/ ˌɑːbɪˈtreɪʃən /

noun

1. law the hearing and determination of a dispute, esp an industrial dispute, by an impartial referee selected or agreed upon by the parties concerned

2. international law the procedure laid down for the settlement of international disputes

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arbitration Cultural  

1. The settling of disputes (especially labor disputes) between two parties by an impartial third party, whose decision the contending parties agree to accept. Arbitration is often used to resolve conflict diplomatically to prevent a more serious confrontation.

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Usage

What does arbitration mean? Arbitration is a process in which two parties in a dispute use an independent, impartial third party to settle the dispute, often by making a decision that they both agree to.For a process to be considered arbitration, it must involve an impartial third party, which can be a single person or a team of people. This person or team is called an arbitrator. To act as this arbitrator is to arbitrate. Arbitrate can also mean to engage in arbitration, as in If we can’t come to an agreement, we may need to arbitrate.The term arbitration is especially used in the context of negotiations between businesses and labor unions. When the two sides can’t agree and negotiations are unproductive, they may seek to pursue arbitration by bringing in an arbitrator.An arbitration process in which the arbitrator’s decision must be accepted by both parties is sometimes called binding arbitration—meaning the arbitrator’s decision is final and legally binding.Example: After weeks of negotiations stalled and resulted in an impasse, the two sides agreed to enter arbitration.

Related Words

See mediation.

Other Word Forms

• arbitrational adjective
• arbitrationist noun
• proarbitration adjective
• proarbitrationist noun
• rearbitration noun

Etymology

Origin of arbitration

First recorded in 1350–1400; Middle English, from Latin arbitrātiōn- (stem of arbitrātiō ), equivalent to arbitrāt(us) ( arbitrate ) + -iōn- noun suffix; -ion

Example Sentences

Despite Two Sigma’s “undeniable success, the Co-Chairmen’s ongoing disputes and differing views on corporate governance have caused management dysfunction,” the arbitration panel found, according to the filing.

From The Wall Street Journal • Apr. 1, 2026

He told the New York Times in 1999 that he was “irked” that many players did not know that it was the union that made their enormous salaries and benefits, arbitration and free agency possible.

From Los Angeles Times • Mar. 25, 2026

He chairs the Expediency Council, a top arbitration body that serves as the final arbiter between parliament and the constitutional watchdog, the Guardian Council.

From BBC • Mar. 17, 2026

It also matters whether the arbitration decision was binding and whether it was formally confirmed by the court.

From MarketWatch • Mar. 11, 2026

Employers eventually agreed to government arbitration to end the strike.

From "Fannie Never Flinched" by Mary Cronk Farrell

Related Words

• adjudication
• compromise
• mediation