What is it called when parties with a dispute submit to the judgment of an impartial third party?

The correct term for when parties with a dispute submit to the judgment of an impartial third party is arbitration. In this process, the third party, known as an arbitrator, listens to the evidence and arguments presented by both sides and then makes a binding decision that the parties must accept. This method is often favored for its efficiency and confidentiality compared to traditional court litigation.

Mediation, by contrast, involves a neutral mediator who helps the parties communicate and negotiate but does not impose a decision. Negotiation is a dialogue between parties aimed at reaching a mutual agreement without third-party intervention. Litigation refers to the formal process of resolving disputes through the court system, which may involve several legal procedures and is typically more time-consuming and public. Thus, arbitration specifically captures the essence of binding judgment by an impartial entity.