What is Arbitration?
A definition of Arbitration
“Arbitration is a method of resolving disputes outside of the courts where a neutral third party makes a binding decision. It is often used in commercial, labor, and international conflicts.”

Business Glossary > What is Arbitration?
Examples of Arbitration in a Sentence:
Arbitration is frequently used in international business agreements.
The contract mandates arbitration in case of a dispute.
Our company prefers arbitration to lengthy court battles.
Why is Arbitration Important in Business?
Arbitration matters because it provides a party-neutral environment to solve disputes efficiently and privately. It often results in quicker resolutions than traditional litigation, which can be advantageous for maintaining business relationships.
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Associated Terms
Here are some associated business terms and synonyms for “Arbitration”:
- Dispute Resolution
- Mediation
- Binding Arbitration
Uber and Arbitration
Uber often uses arbitration clauses in its user agreements to handle disputes outside the courtroom. This approach helps the company manage legal challenges more efficiently and avoid drawn-out litigation with drivers and passengers.
Final Notes on Arbitration
When involved in arbitration, parties should consider the selection of arbitrators and the rules governing the process. Understanding these can affect the outcome of the arbitration significantly.
This has been a definition of Arbitration meaning.
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