Arbitration

Definition: Arbitration is a conflict resolution method outside the court, in which 2 or more parties agree in advance to be bound by the decision ("award") to be taken by one or more arbiters (a neutral, third party) after a hearing at which both parties have an opportunity to be heard.
The arbiter reviews the evidence in the case and imposes a decision that is legally binding and enforceable for both sides. Depending on the jurisdiction, also non-binding arbitration is conceivable.
A can be mandatory (based on a statute or contract) or voluntary.
A is frequently used for business disputes, in particular for international transactions, as well as for employment and consumer matters.

More on arbitration.
More on conflict resolution: Disagreeing, Mediation, Nonviolent Communication.

MBA Brief offers brief, yet very accurate definitions of MBA concepts, frameworks, methods and models. We keep it short and provide some links in case you'd like to learn more around a subject.