What is the process called when two parties turn a disagreement over to a third party for resolution?

The process of turning a disagreement over to a third party for resolution is called arbitration. In arbitration, the parties involved present their case to an impartial arbitrator or a panel of arbitrators, who then make a binding decision on the matter. This process is typically more formal than mediation and can include a structured hearing where evidence is presented.

Arbitration is often governed by predetermined rules and procedures, making it distinct from mediation, where the mediator facilitates communication and negotiation between the parties but does not make a binding decision. While negotiation involves direct discussion between parties to reach an agreement, and facilitation involves a neutral party helping guide a discussion without making decisions, arbitration specifically involves the delegation of decision-making authority to a third party. This makes it a critical mechanism in resolving disputes in various contexts, such as legal, commercial, or labor relations.