A more thorough explanation:

The manifest-disregard doctrine is a principle in arbitration law that states an arbitration award can be overturned if the arbitrator knowingly and intentionally disregarded the applicable law. However, if the arbitrator made a mistake or misunderstood the law, the award cannot be vacated.

For example, if an arbitrator is aware of a specific law that should be applied to a case but chooses to ignore it, the manifest-disregard doctrine may be invoked to vacate the award. On the other hand, if the arbitrator simply misinterprets the law or makes an error in applying it, the award will stand.

Another example could be a case where an arbitrator is aware of a contract provision that limits damages to a certain amount, but awards a higher amount anyway. This would be a clear violation of the manifest-disregard doctrine and could result in the award being vacated.

Overall, the manifest-disregard doctrine is a way to ensure that arbitrators are held accountable for their decisions and that the law is properly applied in arbitration proceedings.