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

Similar logic applies in a completely different field: legal arbitration.

From The Wall Street Journal

Attorneys for both sides are scheduled to meet in court next month for a hearing on UCLA’s motion to compel arbitration, a move that if granted would keep the matter out of public view.

From Los Angeles Times

It will also enable claimants to launch a case on their own, as opposed to the previous system where both the claimant and the current holder of the disputed property had to agree to arbitration.

From Barron's

Orano officially retains a 60 percent stake in the subsidiaries, and has undertaken various arbitration procedures to try to win back operational control.

From Barron's

“At current trading levels, we estimate the stock is currently imputing lower LNG margins, minimal future growth, and/or additional negative arbitration outcomes beyond what the company has stated,” they wrote.

From Barron's

Related Words

• adjudication
• compromise
• mediation