What does Arbitration Clause mean? Read on to discover the definition & meaning of the term Arbitration Clause - to help you better understand the language used in insurance policies.
An alternative dispute resolution clause in a contract that requires the parties to resolve disputes arising out of or concerning the contract through arbitration as opposed to mediation or litigation. Usually, each party appoints an arbitrator. The two arbitrators select a third, or an umpire, and a majority decision of the three becomes binding on the parties in the arbitration proceedings.
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