Arbitration, in the context of the law of the United States, is a form of alternative dispute resolution. Specifically, arbitration is an alternative to litigation through which the parties to a dispute agree to submit their respective evidence and legal arguments to a third party (i.e., the arbitrator) for resolution. In practice, arbitration is generally used as a substitute for litigation. In some contexts, an arbitrator has been described as an umpire.[1] Arbitration is broadly authorized by the Federal Arbitration Act. State regulation of arbitration is significantly limited by federal legislation and judicial decisions applying that law.
The practice of arbitration, especially forced arbitration clauses between workers or consumers and large companies or organizations, has been gaining a growing amount of scrutiny from both the general public and trial lawyers. Arbitration clauses face various challenges to enforcement, and clauses are unenforceable in the United States when a dispute which falls under the scope of an arbitration clause pertains to sexual harassment or assault.