What is the term used for a process that resolves disputes by having both parties present their case to a neutral third party?

The process of resolving disputes by having both parties present their case to a neutral third party is known as arbitration. In this setting, the neutral third party, often referred to as an arbitrator, listens to the arguments, reviews the evidence, and then makes a binding decision based on the information presented. This process is typically more formal than mediation or negotiation and has legal enforceability, similar to a court judgment.

Arbitration is often chosen because it provides a quicker resolution than traditional court proceedings and allows parties to avoid the public nature of court trials. This method is particularly common in business and labor disputes, where confidentiality and swift resolutions are valuable to the involved parties.

In contrast, mediation involves a neutral third party facilitating communication between the disputing parties to help them reach a mutually acceptable agreement, but the mediator does not make a binding decision. Conciliation also aims to help parties settle disputes amicably, but it may involve the conciliator making recommendations. Negotiation is a direct discussion between the parties to reach a settlement without involving a third party. Each of these terms denotes a different approach to dispute resolution, distinguishing arbitration as the process that involves a definitive ruling by a neutral arbitrator.