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One of the key roles of an arbitrator is to interpret the language of a contract, even when that language is unclear or ambiguous. Describe the rules that arbitrators apply to try to fairly interpret the contract.
On Sep 22, 2024
To interpret a contract, arbitrators use three elements: contractual language, intent, and past practice. With regard to contractual language, the arbitrator will look to the ordinary meaning of words unless they are explicitly defined in the contract. More weight will be given to specific language than general language where, for example, the contract language might conflict. If the arbitrator is unable to resolve the dispute based on the plain language, he or she will consider the intent of the parties when the language was crafted. Here the union and management's notes from contract negotiations can be very helpful. Finally, the arbitrator will look to the past practices of the parties in handling the same or similar situations.