Arbitration 2
Arbitration 2 : A method of dispute settlement in which an independent third party (usually a tribunal) considers the arguments of both sides and then takes a decision binding on the parties in the dispute. Arbitration can be: compulsory: compulsory dispute settlements - by a third party - required by law; obligatory: arbitration which results from the voluntary agreement of parties under a collective agreement to submit further disputes related to the agreement to a third party for settlement; voluntary: a mutual request by labour and management that an issue on which they do not agree be submitted to arbitration. Adjudication is basically also a form of arbitration in that there is a neutral third party who takes a binding decision, the difference being mostly in the enforcement of the decision. In most countries, if one of the parties does not follow the arbitration award (this is the outcome of the arbitration process, the decision taken by the arbitrator), the other party will have to go to court to have the decision enforced. Although the decision taken by an arbitrator is binding, this does not mean that a party cannot appeal. This appeal will be handled through adjudication. Another distinction made in many countries is that adjudication handles rights disputes while arbitration, in the strict sense of the word, focuses on interests disputes
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