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

Explanation

When an uninvolved, impartial person is called in to help settle a dispute, it's called arbitration. The person in charge of the arbitration acts like an official referee, helping both sides come to an agreement. The noun arbitration comes to English via the Latin word arbitrari, meaning "to judge." In English, arbitration is both the process of using an arbiter to settle a dispute and the act of that arbiter making a judgment. Many parents know that if the arbitration of your kids' argument was deemed unfair by both kids, you've usually made the right decision.

Example Sentences

The arbitration is separate from Hutchison’s case against Panama and will be heard in London.

From The Wall Street Journal • Apr. 8, 2026

An association of attorneys who advocate for investors argues that the money would be better spent addressing unpaid arbitration awards.

From Barron's • Mar. 28, 2026

He is making $10.2 million in 2026, his last season of arbitration, and earned an additional $20 million or so from his signing bonus and salaries in his first five seasons.

From Los Angeles Times • Mar. 27, 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

The four boys were looking for possible routes of escape when Red’s brother decided that in arbitration lay his salvation from this swiftly retrograding dilemma.

From "The Great Santini" by Pat Conroy

Related Words

• adjudication
• compromise
• mediation