Voluntary Arbitration Law and Legal Definition
Voluntary Arbitration is arbitration by the agreement of parties. It is a binding adversarial dispute resolution process in which the disputing parties choose one or more arbitrators to hear their dispute and to render a final decision or award after an expedited hearing.
Some of the important elements in voluntary arbitration are :
a. Voluntary submission of dispute to an arbitrator.
b. Subsequent attendance of witnesses and investigations.
Voluntary arbitration may be specifically needed for disputes arising under agreements.
The following is an example of a state statute (Oregon) defining the term:
According to ORS § 243.650, "Voluntary arbitration" means the procedure whereby parties involved in a labor dispute mutually agree to submit their differences to a third party for a final and binding decision.
