Arbitration Legal Meaning and Definition

Here is a simplified definition of the legal term Arbitration.

Arbitration (noun):

Arbitration is a process where a neutral third party, also known as an arbitrator, makes a decision to resolve a dispute between two or more parties outside of court. Basically, instead of going to court, the parties involved agree to let this arbitrator make a decision for them. Unlike an attorney, who works for one party in a dispute, an arbitrator does not work for any party and should be unbiased.