A process of settling a dispute or disagreement in which the people, or groups, on both sides present their opinions and ideas to a third party for a decision: The equally qualified applicants for the job agreed to go to arbitration to determine who would be hired for the position.

The process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party: A binding arbitration means that two sides have agreed to, or are forced to, accept a judge's decision.