arbitration

ar-bih-TRAY-shun /ˌɑːbɪˈtreɪʃn/
nounC1GMATLSATCAT
formallegal

The use of an arbitrator to settle a dispute.

Unlike mediation, arbitration usually results in a 'binding' decision—the parties must follow what the arbitrator says.

The story behind the word. From the Latin 'arbiter,' meaning a person who goes somewhere as a witness or judge. It comes from 'ad-' (to) + 'baetere' (to go).

Word relationships

  • adjudication: Adjudication is done by a judge in a court; arbitration is done by a private third party.
  • litigation: Litigation is the process of taking a dispute to a public court.

Commonly confused with

  • mediation: In mediation, you agree together; in arbitration, someone else decides for you.

Word family

  • arbitrate (verb): To reach an authoritative judgment or settlement.
  • arbitrator (noun): An independent person or body officially appointed to settle a dispute.

Collocations

  • binding arbitration
  • submit to arbitration
  • arbitration clause

Example sentences

  • "The dispute over the maritime border was finally settled through international arbitration." International law.
  • "Most modern employment contracts include a clause requiring arbitration rather than a lawsuit in the event of a dispute." Employment contracts.

Memory hook

An arbitrator is like a 'referee' who makes the final 'bit' of the decision. The final judge.

When not to use

Don't use it for a casual compromise; it implies a formal, quasi-legal process.

Fun facts

  • The word 'arbitrary' comes from the same root, but it has come to mean 'based on random choice' rather than 'judicious.'
  • The 'Alabama Claims' of 1872 was a landmark case of international arbitration between the US and Britain.

Related words

mediation, negotiation

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