arbitration

n. mediation, settling of a dispute through a mutually chosen mediator

Arbitration is a legal technique for the resolution of disputes outside the courts, wherein the parties to a dispute refer it to one or more persons such as (the "arbitrators", "arbiters" or "arbitral tribunal"), by whose decision (the "award") they agree to be bound.  Arbitration in the United States and in other countries often includes alternative dispute resolution (ADR), a category that more commonly refers to mediation (a form of settlement negotiation facilitated by a neutral third party). It is more helpful, however, simply to classify arbitration as a form of binding dispute resolution, equivalent to litigation in the courts, and entirely distinct from the various forms of non-binding dispute resolution, such as negotiation, mediation, or non-binding determinations by experts.
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Noun
1. (law) the hearing and determination of a dispute by an impartial referee agreed to by both parties (often used to settle disputes between labor and management)
(hypernym) mediation
(derivation) intercede, mediate, intermediate, liaise, arbitrate
(classification) law, jurisprudence
2. the act of deciding as an arbiter; giving authoritative judgment; "they submitted their disagreement to arbitration"
(synonym) arbitrament, arbitrement
(hypernym) judgment, judgement, judicial decision
(derivation) intercede, mediate, intermediate, liaise, arbitrate

(n.)
The hearing and determination of a cause between parties in controversy, by a person or persons chosen by the parties.
  

The procedure available to customers for the settlement of disputes. Brokers and exchange members are required to participate in arbitration to settle disputes. Arbitration is available through the exchanges, the NFA, and the CFTC.