Dictionary.com Unabridged (v 1.1) - Cite This Source - Share This

American Heritage Dictionary - Cite This Source - Share This

ar·bi·tra·tion       (är'bĭ-trā'shən)  Pronunciation Key  n.   The process by which the parties to a dispute submit their differences to the judgment of an impartial person or group appointed by mutual consent or statutory provision.

WordNet - Cite This Source - Share This

arbitration
noun
1.	(law) the hearing and determination of a dispute by an impartial referee agreed to by both parties (often used to settle disputes between labor and management)
2.	the act of deciding as an arbiter; giving authoritative judgment; "they submitted their disagreement to arbitration"

American Heritage New Dictionary of Cultural Literacy, Third Edition - Cite This Source - Share This
arbitration

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.

[Chapter:] American Politics

Investopedia - Cite This Source - Share This

Arbitration

An informal hearing regarding a dispute. The dispute is judged by a group of people (generally three) who have been selected by an impartial panel. Once a decision has been reached, there is no further appeal process.

Investopedia Commentary

We frequently hear this term when professional sports teams are negotiating contracts with their athletes. Typically, one party aims unrealistically high and the other one aims really low, and the settlement occurs somewhere in the middle.

Related Links

Tips For Resolving Disputes With Your Financial Advisor

See also: Cooling-off Rule, Heads of Agreement, Judgment, Rescission

Also spelled: Arbitrator, Arbitrate

Wallstreet Words - Cite This Source - Share This
arbitration

A process for settling disputes between securities firms or between securities firms and their customers in which the parties submit their differences to the judgment ofan impartial third party or parties. Many brokerage firms require their customers to sign an agreement for binding arbitration to resolve disputes. The agreement requires the customer to accept thearbitrator's decision and to waive the right to subsequent legal action. Pressure from the SEC and a 1990 court decision now allows investors the option of using an independent arbitration panel inplace of a securities-industry panel. Compare mediation. See also NASD Dispute Resolution,Inc..

Merriam-Webster's Dictionary of Law - Cite This Source - Share This
Main Entry: ar·bi·tra·tion
Pronunciation: "är-b&-'trA-sh&n
Function: noun
Etymology: Latin arbitratio, from arbitrari tojudge, arbitrate, from arbiter onlooker, arbitrator
: the process of resolving a dispute (as between labor and management) or a grievance outside of the court system by presenting itto an impartial third party or panel for a decision that may or may not be binding —compare MEDIATION

---

final offerarbitration
: interest arbitration in which the arbitrator must accept or reject the final offer of any party and may not decide to compromise

---

grievance arbitration
: arbitration of a dispute over something in an existing collective bargaining agreement called also rights arbitration —compare INTEREST ARBITRATION in this entry

---

interest arbitration
: arbitration of a dispute over theprovisions to be entered in a new contract —compare GRIEVANCE ARBITRATION in this entry

---

rightsarbitration
: GRIEVANCE ARBITRATION in this entry—ar·bi·tra·tion·al /"är-b&-'trA-sh&-n&l/ adjective

Webster's Revised Unabridged Dictionary - Cite This Source - Share This

Arbitration

Ar`bi*tra"tion\, n. [F. arbitration, L. arbitratio, fr. arbitrari.] The hearing and determination of a cause between parties in controversy, by a person or persons chosen by the parties.

Note: This may be done by one person; but it is usual to choose two or three called arbitrators; or for each party to choose one, and these to name a third, who is called the umpire. Their determination is called the award. --Bouvier

Arbitration bond, a bond which obliges one to abide by the award of an arbitration.

Arbitration of Exchange, the operation of converting the currency of one country into that of another, or determining the rate of exchange between such countries or currencies. An arbitrated rate is one determined by such arbitration through the medium of one or more intervening currencies.