An example of an arbitration would be when two people who are divorcing cannot agree on terms and allow a third party to come in to help them negotiate.
(countable and uncountable, plural arbitrations)
- The act or process of arbitrating.
- A process through which two or more parties use an arbitrator or arbiter in order to resolve a dispute.
- In general, a form of justice where both parties designate a person whose ruling they will accept formally. More specifically in Market Anarchist (market anarchy) theory, arbitration designates the process by which two agencies pre-negotiate a set of common rules in anticipation of cases where a customer from each agency is involved in a dispute.
arbitration - Computer Definition
A set of rules for allocating machine resources, such as memory or peripheral devices, to more than one user or program.
arbitration - Investment & Finance Definition
A binding dispute-resolution process in which an impartial person or group of people hear the facts and decides how the matter should be resolved. Arbitration has the effect of a court order. Many brokerage firms require their clients to sign agreements stating that they will use arbitration, rather than take legal action, in the event that there is a disagreement. Stock, futures, or options exchanges, and other professional or regulatory associations are often involved in administering arbitration proceedings. Arbitration contrasts with mediation, which isn’t binding on the parties.
arbitration - Legal Definition