Partnership Glossary


A type of dispute resolution, whereby one or more persons (called arbitrators) determine the outcome of the dispute, similar to the manner in which a judge makes a decision in a lawsuit. Arbitration can either be binding (meaning that the decision of the arbitrators is final) or nonbinding (meaning that either party can file a lawsuit to have the matter heard in a court). The idea is that arbitration is quicker and less expensive than a lawsuit in court; however, this is not always the case in practice.