: the action of arbitrating
especially : the hearing and determination of a disputed case by an arbiter
a case that is in arbitration
They agreed to settle the dispute by arbitration.

Did you know?

Are arbiter and arbitration arbitrary?

A large portion of the words we use today come from Latin roots. Many of these words retain a meaning that is closely related to their Latin ancestor, although sometimes they will drift a considerable distance from their roots (sinister, for instance, had the meaning of “on the left side” in Latin, but also meant “unlucky, inauspicious”). In some instances, a single Latin word will give rise to multiple words in English, some of which have strayed in meaning, and others which have not.

An example of this may be found in our word arbiter. We trace it to the Latin root with the same spelling, arbiter, meaning “eyewitness, onlooker, person appointed to settle a dispute.” A number of English words stem from the Latin arbiter, many of which have to do with judging or being a judge. An arbiter is a judge, and arbitration is the act of judging, or serving as an arbiter. Yet the most common meaning of arbitrary is “existing or coming about seemingly at random or by chance or as a capricious and unreasonable act of will,” which seems to be quite a bit different in meaning from the other two words. Arbitrary does indeed come from the same Latin root, and its oldest meaning in English was “depending on choice or discretion particularly regarding the decision of a judge or a tribunal.” But over time it developed additional senses that are somewhat removed from that initial meaning.

Examples of arbitration in a Sentence

Recent Examples on the Web
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The company reincorporated from Delaware to Texas in 2024, and its charter pushes shareholder claims into mandatory arbitration and limits derivative suits to investors holding at least 3% of the stock—a stake worth tens of billions of dollars. — Heather Occhino, Fortune, 21 Oct. 2026 Unlike litigation in federal court, arbitration and mediation are generally conducted outside the public judicial process and often subject to confidentiality arrangements. — Michael McCann, Sportico.com, 20 Oct. 2026 Marine terminal operators and dockworkers at the Port of Montreal have a new five-year contract, imposed by an arbitration tribunal and announced Friday by the Maritime Employers Association (MEA). — Glenn Taylor, Footwear News, 20 Oct. 2026 The first involves whether the state budget should cover agreements stemming from arbitration between the state and its employees. — Renee Anderson, CBS News, 20 Oct. 2026 See All Example Sentences for arbitration

Word History

Etymology

Middle English arbitracioun, borrowed from Anglo-French arbitracion, borrowed from Latin arbitrātiōn-, arbitrātiō, from arbitrārī "to consider, judge, arbitrate" + -tiōn-, -tiō, suffix of verbal action

First Known Use

15th century, in the meaning defined above

Time Traveler
The first known use of arbitration was in the 15th century

Browse Nearby Words

Cite this Entry

“Arbitration.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/arbitration. Accessed 22 Oct. 2026.

Kids Definition

arbitration

noun
: the act of arbitrating
especially : the settling of a dispute in which both sides present their arguments to a third person or group for settlement

Legal Definition

arbitration

noun
: the process of resolving a dispute (as between labor and management) or a grievance outside of the court system by presenting it to an impartial third party or panel for a decision that may or may not be binding compare mediation
— final offer arbitration
: interest arbitration in which the arbitrator must accept or reject the final offer of any party and may not decide to compromise
— grievance arbitration
: arbitration of a dispute over something in an existing collective bargaining agreement

called also rights arbitration

compare interest arbitration in this entry
— interest arbitration
: arbitration of a dispute over the provisions to be entered in a new contract compare grievance arbitration in this entry
— rights arbitration
: grievance arbitration in this entry
Etymology

Latin arbitratio, from arbitrari to judge, arbitrate, from arbiter onlooker, arbitrator

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