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Simple English definitions for legal terms
arbitration act
Read a random definition: international commerce
A quick definition of arbitration act:
Arbitration Act: The Arbitration Act is a law that allows people to resolve their disagreements outside of court. Instead of going to a judge, the people involved in the dispute agree to have a neutral third party, called an arbitrator, listen to both sides and make a decision. This law can be found at both the federal and state level.
A more thorough explanation:
An Arbitration Act is a law created by the federal or state government that allows disputes to be resolved through arbitration. Arbitration is a process where a neutral third party, called an arbitrator, listens to both sides of a dispute and makes a decision that is legally binding.
For example, if two companies have a disagreement over a contract, they may choose to use arbitration to resolve the issue instead of going to court. The Arbitration Act provides guidelines and procedures for how the arbitration process should be conducted.
Another example is if an employee has a dispute with their employer over wages or working conditions, they may choose to use arbitration instead of filing a lawsuit. The Arbitration Act would provide the rules and regulations for how the arbitration process should be carried out.
The Arbitration Act is important because it provides an alternative to going to court, which can be time-consuming and expensive. It also allows for disputes to be resolved in a more private and confidential manner.