arbitrator
Definition
An arbitrator is a neutral, private person who acts like a judge to settle a dispute between two parties outside of a courtroom. Both sides agree to present their case to this person, and the arbitrator makes a binding decision that the parties must follow.
Example
If your contract with a supplier requires arbitration, and a payment dispute arises, an arbitrator would hear both sides and decide who owes what instead of a judge doing so in court.
Watch Out
Many business contracts quietly include arbitration clauses that require you to use an arbitrator rather than sue in court, which means you could give up your right to a jury trial before a dispute ever happens.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.