Meaning & use

binding arbitration

noun·Advancedlegalformal

Last updated

UK/ˈbaɪndɪŋ ˌɑːbɪˈtreɪʃən/
US/ˈbaɪndɪŋ ˌɑːrbɪˈtreɪʃən/

Meaning

  1. noununcountablelegalformal

    A process where a neutral person decides a dispute and both sides must accept the decision.

    Grammar: No plural; used with 'go to' or 'through': go to binding arbitration.

    Patterns

    • go to binding arbitration
    • through binding arbitration
    • submit to binding arbitration

    The contract says any disagreement must go to binding arbitration.

    After months of talks, the company and the union agreed to binding arbitration.

    Binding arbitration is often faster and cheaper than going to court.

Common combinations

go to binding arbitration
If we cannot agree, we will go to binding arbitration.
submit to binding arbitration
Both parties agreed to submit to binding arbitration.
binding arbitration clause
Check the binding arbitration clause before you sign.
through binding arbitration
The dispute was settled through binding arbitration.

Synonyms and how they differ

arbitration
Arbitration is the general process; binding arbitration specifically means the decision is final and must be obeyed.
mediation
Mediation is when a neutral person helps the sides talk, but the decision is not forced; binding arbitration gives a decision that must be accepted.

Word family

arbitrate verb
To act as a neutral judge in a dispute.
arbitrator noun
The person who decides the dispute.

Commonly confused: binding arbitration or mediation?

binding arbitration vs mediation

Mediation helps people reach their own agreement; binding arbitration imposes a decision that both sides must accept.

Practice

The two companies couldn't agree, so they decided to go to ______ arbitration.

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