Third parties render binding decisions when voluntary arbitration is contractually agreed.

Evidence

Voluntary Arbitration 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. … Baseball’s system of salary arbitration reveals the basic features of arbitration: A dispute is submitted to a neutral third party who hears arguments, reviews evidence, and renders a decision. — G. Alan Tarr, Judicial Process and Judicial…, 2340

Categorization

• DEFINE: Baseball salary arbitration cleanly illustrates what arbitration is and the definitional tag points to a memorable real-life example a student can anchor to.
• XREF: connects to: Arbitration splits between private settlement and court-backed enforcement. — Lawrence M. Friedman and Grant M. Hayden, American Law: An Introduction, 142; Voluntary arbitration rests on party consent, selection, and negotiated rules — G. Alan Tarr, Judicial Process and Judicial…, 1168