Arbitration

Arbitration is a method of settling disputes privately instead of in public court. The parties present their case to one or more neutral arbitrators whose decision is usually binding and hard to appeal. Many contracts require arbitration through a clause that names the rules and the location.

Arbitration can be faster and more private than litigation, but it also limits the right to appeal and to a jury. Whether that trade is worth it depends on the deal. The clause sits alongside governing law, which still determines the substantive rules the arbitrator applies.