binding arbitration

binding arbitration definition - business

binding arbitration

A noncourt process for resolving a dispute in which a neutral third party (the arbitrator) has the power to impose a settlement. The parties involved in the dispute sometimes agree in advance to limits that may be imposed by the arbitrator. Also called compulsory arbitration.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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