COMPULSORY ARBITRATION: in which the parties are forced to agree, is generally not provided for in federal law. The states, however, have increasingly provided for compulsory arbitration in areas beyond the control of federal law, such as police and firefighters' contracts.
NONBINDING ARBITRATION: process where the parties are free to follow the arbitrator's findings or disregard them and proceed to court. The arbitrator's decision is not final.
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Source: Barron's Dictionary of Legal Terms, Steven H. Gifis, 5th Edition; ©