Final-offer arbitration binds both parties to the arbitrator’s chosen figure

Evidence

After a period in the major leagues, a baseball player who cannot agree with his team on a salary is eligible to take the dispute to arbitration. The player proposes a salary that he believes is fair and offers arguments and evidence for his position. The team submits a different figure and supports its position. The arbitrator then chooses one of the two figures, and both parties are bound by that decision. — G. Alan Tarr, Judicial Process and Judicial…, 2340

Categorization

• CANDY: A salary fight between a ballplayer and his team, decided by a stranger picking one of two numbers, is an easy way to explain arbitration at a party.
• DEFINE: Baseball’s system is the textbook illustration of arbitration’s binding, interest-based procedure.
• XREF: connects to: Baseball salary arbitration forces arbitrator choice between two party-fixed figures — G. Alan Tarr, Judicial Process and Judicial…, 1165; The nomination of an impartial arbitrator reveals reciprocal coordination between conflicting parties; Third parties render binding decisions when voluntary arbitration is contractually agreed. — G. Alan Tarr, Judicial Process and Judicial…, 2340 (+6 more)

Broader Connections

• Arbitration hands dispute resolution to a neutral third party who decides #corroborates (1.00) — G. Alan Tarr, Judicial Process and Judicial…, 2341
• The nomination of an impartial arbitrator reveals reciprocal coordination between conflicting parties #expands (0.95)
• Third parties render binding decisions when voluntary arbitration is contractually agreed. #corroborates (0.90) — G. Alan Tarr, Judicial Process and Judicial…, 2340
• Arbitration’s praised finality is only a benefit to winners, not losers #complicates (0.90) — Henry M. Hart, Jr. and Albert M. Sacks, The Legal Process, 4872
• Unwritten arbitration decisions make outcomes unpredictable in novel cases. #contradicts (0.85) — Lisa Bernestein, Opting out of the Legal System, 263
• Tacit bargaining forces one party to accept an unfair focal point #complicates (0.80) — Thomas C. Schelling, The Strategy of Conflict, 150
• Court-annexed arbitration is nonbinding but penalizes losing appeals #contradicts (0.80) — G. Alan Tarr, Judicial Process and Judicial…, 2350
• A party secures allied-group consent by arbitrating between its own and others’ interests #complicates (0.75) — Antonio Gramsci, Selections from the Prison Notebooks, 662