Arbitration clause

You know how when you and your friends are playing a game and you can't decide who won? You might ask your parents or a teacher to be a "referee" and make a fair decision.

Arbitration is kind of like having a referee for grown-up problems. Sometimes when people make agreements, like for a job or a big purchase, they write something called an "arbitration clause" into the agreement.

This means that if there's a disagreement or argument about the agreement, instead of going to court, both sides will have to talk about it with a neutral person called an arbitrator. The arbitrator listens to both sides and makes a decision that both sides have to follow.

It's like a grown-up game with rules, and the arbitrator is like the referee who makes sure everyone follows the rules and the game is fair. So, an arbitration clause is just a part of an agreement that says if there's ever a disagreement, the grown-ups will use an arbitrator instead of going to court.