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What does "binding arbitration" mean?

Feb 22, 2019
The zeyo team
Zeyo Team

Binding arbitration is a method of alternative dispute resolution (ADR) that utilizes a neutral, third party that renders a legally binding, court enforceable judgment on a dispute between parties. The alternative to binding arbitration would be non-binding arbitration, in which case the arbitrator will suggest, rather than impose, a decision to the parties. If the arbitration is binding, both parties sign a contract agreeing to accept whatever decision their neutral third party comes to as final. In binding arbitration, after hearing the facts and the evidence, the arbitrator gives the disputing parties a court-enforceable verdict.

What does "binding arbitration" mean?

Binding arbitration is a method of alternative dispute resolution (ADR) that utilizes a neutral, third party that renders a legally binding, court enforceable judgment on a dispute between parties. The alternative to binding arbitration would be non-binding arbitration, in which case the arbitrator will suggest, rather than impose, a decision to the parties. If the arbitration is binding, both parties sign a contract agreeing to accept whatever decision their neutral third party comes to as final. In binding arbitration, after hearing the facts and the evidence, the arbitrator gives the disputing parties a court-enforceable verdict.

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