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Arbitration is the hearing of a dispute by an impartial third person or persons (chosen by the parties), whose award/decision the parties agree to accept.

In consumer and employment contracts, arbitration agreements often include class-action waivers, requiring parties to seek relief on an individual basis only. In April 2011, the U.S. Supreme Court ruled that states like California could not refuse to enforce an agreement to arbitrate with a class-action waiver on the grounds that it would deny class relief (AT&T Mobility v. Concepcion).