What is the term for submitting a decision to a third party to settle a controversy?

The term for submitting a decision to a third party to settle a controversy is arbitration. In this process, both parties involved in a dispute agree to present their case to an impartial third party, known as an arbitrator, who has the authority to make a binding decision. This is often chosen as a means of resolving conflicts outside of the courtroom, providing a more expedited and private form of dispute resolution compared to traditional litigation.

Arbitration is distinct in that the arbitrator’s decision is usually final and legally enforceable, which is different from mediation where a mediator helps facilitate discussions between parties but does not make binding decisions. Negotiation involves direct discussions between the parties to reach a mutual agreement without third-party intervention. Litigation refers to the process of taking legal action in court, which is often more formal and lengthy than arbitration. Understanding these distinctions helps clarify why arbitration is specifically the correct term when a third party’s decision is sought to resolve a dispute.