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Arbitration definition

What is the definition of "arbitration"? 
Arbitration is the non-judicial process of resolving a dispute, such as a claim by one party of a business relationship against another. The resolution of such a dispute lies with an an impartial third party, the arbitrator.

The arbitrator's decision is often binding, but it could be non-binding, if that's what is agreed to origianally by the parties. If binding, unless otherwise agreed, the findings of the arbitrator are final, not subject to appeal or further court action, and can be challenged only in limited circumstances.

Many businesses include arbitration language in the contracts they provide to their customers. It is important to recognize, understand and accept the dispute options available before signing any contract. 
Brain Trust contributor: Author of Instant Profits: Making Your Business Pay
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