Legal Definitions - arbitration

Arbitration is a way to solve a disagreement without going to court. The people who are arguing agree to have someone else, called an arbitrator, listen to their case and make a decision. This decision is final and legally binding, just like a court decision. Arbitration is often used because it is less expensive than going to court.

For example, if two people have a disagreement about a contract, they might choose to go to arbitration instead of going to court. They would agree on an arbitrator, who would listen to both sides and make a decision. This decision would be final and legally binding.

However, some people are concerned about mandatory arbitration clauses. These are clauses in contracts that say any disagreements must be solved through arbitration, not through the court system. Some people worry that this takes away their right to a fair trial. The Supreme Court has said that these clauses are legal, but some people still have concerns.

It's important to note that some workers, like seamen and railroad employees, are exempt from mandatory arbitration clauses. This means that if they have a disagreement with their employer, they can still go to court if they want to.