Arbitration
Arbitration is a procedure whereby a third party holds a hearing, at which time disputants state their position on the issues, call witnesses, and offer supporting evidence for their respective positions. After the hearing, the arbitrator issues a binding settlement. The greatest advantage of arbitration is that it always produces a settlement. Moreover, the mere threat of arbitration often motivates parties to settle voluntarily Like mediation, arbitration allows disputants to save face" with their constituents because they can always blame the arbitrator if the imposed settlement is The two major types of arbitration are traditional arbitration and unsatisfactory. final-offer arbitration.