Arbitration is the most definitive type of third-party intervention, in which the arbitrator usually has the power to determine and dictate the settlement terms. Unlike mediation and fact finding, arbitration can guarantee a solution to an impasse. Arbitration may also be voluntary or compulsory (in other words, imposed by a government agency).
Arbitration definition in Contemporary Business
Arbitration is the bringing in an impartial third party called an arbitrator to render a binding decision in a dispute.