arbitration

/arbatreyshan/

A process of dispute resolution in which a neutral third party (arbitrator) renders a decision after a hearing at which both parties have an opportunity to be heard. Where arbitration is voluntary, the disputing parties select the arbitrator who has the power to render a binding decision.

An arrangement for taking and abiding by the judgment of selected persons in some disputed matter, instead of carrying it to established tribunals of justice, and is intended to avoid the formalities, the delay, the expense and vexation of ordinary litigation. Wauregan Mills Inc. v. Textile Workers Union of America, A.F.L.C.I.O., 21 Conn.Sup. 134, 146 A.2d 592, 595.

Such arbitration provisions are common in union collective bargaining agreements. The majority of the states have adopted the Uniform Arbitration Act. Agreements to arbitrate have been declared to be valid and fully enforceable by statute. 9 U.S.C.A. No. 2.

An organization that provides arbitration services is the American Arbitration Association (q.v.).

See also alternative dispute resolution

- conciliation

- mediation

- Mediation and Conciliation Service

- reference.

@ compulsory arbitration

Compulsory arbitration is that which occurs when the consent of one of the parties is enforced by statutory provisions. Examples of such are state statutes requiring compulsory arbitration of labor disputes involving public employees.

See arbitration clause

- voluntary arbitration

@ final offer arbitration

Final offer arbitration. In this type of arbitration, the arbitrator must choose the final offer of either one party or the other and is, therefore, not permitted to compromise.

@ interest arbitration

@ grievance arbitration

@ interest and grievance arbitration

Interest and grievance arbitration distinguished. Interest arbitration involves settlement of terms of a contract between the parties as contrasted with grievance arbitration which concerns the violation or interpretation of an existing contract. School Committee of Boston et al. v. Boston Teachers Union etc., 363 N.E.2d 485.

@ voluntary arbitration

Voluntary arbitration is by mutual and free consent of the parties

@ Arbitration Acts

Federal and state laws which provide for submission of disputes to process of arbitration, including labor grievances and disputes of public employees. An example of a federal Act is Title 9, U.S.C.A. No. 1 et seq. which governs settlement of disputes involved in maritime transactions and commerce under federal statutes. Most states have arbitration acts, many of which are patterned on the Uniform Arbitration Act. The purpose of such acts, in general, is to validate arbitration agreements, make the arbitration process effective, provide necessary safeguards, and provide an efficient procedure when judicial assistance is necessary

@ arbitration and award

An affirmative defense to the effect that the subject matter of the action has been settled by a prior arbitration. Fed.R. Civil P. 8(c)

@ arbitration board

A panel of arbitrators appointed to hear and decide a dispute according to rules of arbitration.

See e.g. American Arbitration Association

@ arbitration clause

A clause inserted in a contract providing for compulsory arbitration in case of dispute as to rights or liabilities under such contract; e.g. disputes arising under union collective bargaining agreement, or disputes between consumer and retailer or manufacturer. The purpose of such clause is to avoid having to litigate disputes that might arise

@ arbitration of exchange

This takes place where a merchant pays his debts in one country by a bill of exchange upon another. The business of buying and selling exchange (bills of exchange) between two or more countries or markets, and particularly where the profits of such business are to be derived from a calculation of the relative value of exchange in the two countries or markets, and by taking advantage of the fact that the rate of exchange may be higher in the one place than in the other at the same time.

See arbitrage

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