Arbitration

Arbitration, process for settling disputes in which the parties submit the controversy to an impartial arbitrator. In conciliation or mediation, the impartial person tries to persuade the parties to accept a settlement; in arbitration, by prior agreement the arbitrator imposes a final and binding decision, called an award. Experienced tribunals established by trade associations arbitrate commercial disputes between business organizations. Industrial arbitration settles disputes between labor and management. Collective bargaining agreements generally provide for an impartial arbitrator to settle conflicts arising from different interpretations of the agreement. Arbitration in international affairs is one of the oldest ways of settling disputes. It was used by the Greek city-states and is today included as a provision in many treaties between nations.