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The source of an arbitrator's authority comes from the parties to the dispute being arbitrated. Both parties agree that their dispute will be settled through arbitration rather than through litigation and they enter into a contract promising that the arbitration will be binding they will abide by the decision of the arbitrator. If one party refuses to honor the arbitrator's decision, the other party can go to court and have the court enforce the arbitration decision, but it won't have to litigate the actual dispute all over again.

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14y ago

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