The "Legal-Ease" Glossary
A way for two parties to end a dispute out of court.
Instead of going to court, the two parties and their lawyers choose an impartial third party called an "arbitrator," and both parties agree in advance to accept the arbitrator's decision. Each side presents the arbitrator with its evidence and testimony. The arbitrator does not participate in the discussion but issues a binding decision.
Arbitration is used to settle many types of disputes, from Auto Insurance claims to employment discrimination claims. This form of conflict resolution is largely voluntary, though arbitration can be mandated by including clauses in certain contracts.
RETURN TO GLOSSARY