arbitration
ar-bih-TRAY-shun
/ˌɑːrbɪˈtreɪʃn/
The settling of a dispute by an impartial third party whose decision is legally binding on all involved.
An out-of-court dispute resolution process; distinct from mediation because the arbitrator's decision is final and enforceable.
The story behind the word. In ancient Rome, an 'arbiter' was a neutral bystander asked to step in and resolve personal conflicts fairly. The term evolved into a legal doctrine during medieval commercial expansion to avoid cumbersome court trials.
Word relationships
- adjudication: Adjudication takes place inside a formal courtroom presided over by a judge; arbitration is private out-of-court settlement.
- mediation: In mediation, the neutral third party helps negotiate a agreement but cannot force a binding decision; an arbitrator issues a binding ruling.
- litigation: The process of taking legal action through public judicial court proceedings.
Commonly confused with
- arbitrariness: Arbitrariness means based on random choice or personal whim; arbitration is a formal, structured legal decision-making process by an impartial expert.
Word family
- arbitrate (verb): To act as an impartial judge in a dispute.
- arbitrator (noun): An independent person officially appointed to settle a dispute.
Collocations
- binding arbitration
- go to arbitration
- arbitration agreement
- arbitration clause
Example sentences
- "After weeks of deadlocked strike negotiations, management and union representatives agreed to binding arbitration." Industrial Dispute
- "The employment contract included a clause requiring disputes to be resolved through private arbitration rather than public courts." Corporate Law
Memory hook
An ARBITER steps in during ARBITRATION to bring an ARBITRARY fight to a fair end. Arbitration = Binding decision by a neutral judge.
When not to use
Do not use when describing a informal conversation between friends where opinions are simply shared without legal binding.
Fun facts
- Major international trade disputes between entire nations are regularly resolved through the Permanent Court of Arbitration in The Hague.
Related words
Explore more words
arbitrate, Binding, adjudicate, settlement, mediate, dispute
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