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Rights Arbitration - This term is used in the context of disputes arising out of existing agreements. Therefore, rights arbitration involves interpretation of existing contract terms.

Interest Arbitration - This term is used when disputes arise and there is no agreement.

As per the book - Labor Relations and Collective Bargaining by Carrell and Heavrin (7th Edition, Prentice Hall), Rights arbitration is found in almost every labor agreement today and is used far more today than interest arbitration. Because interest arbitration tends to have a broader scope than rights arbitration, many unresolved issues are present in interest arbitration.

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