arbitration

What does “arbitration” mean?

noun.the process of settling a dispute by an impartial third party.

SAT Usage

Arbitration is often found in passages discussing conflict resolution, law, or business negotiations. It emphasizes a formal and impartial process for settling disputes, suggesting a preference for peaceful resolution over litigation, and differs from "mediation" in that it typically involves a binding decision made by the arbitrator rather than a collaborative agreement.

Common Confusions

Arbitration implies a binding decision made by an impartial arbitrator to resolve a dispute, while mediation usually suggests a collaborative process where a mediator facilitates an agreement between the parties involved.

Example Sentences

• The two sides agreed to resolve the dispute through arbitration.

• The labor dispute was resolved through arbitration, avoiding a strike.