Learn how arbitration can resolve certain disputes out of the court. Instead of a judge, impartial arbitrators make the legal decision.The definition of arbitrage bond in the IRC 148(a) yield restriction rule refers to. "proceeds. An arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state. Arbitration is an alternative to traditional judicial proceedings. Like court, arbitration involves a neutral person deciding the outcome of a dispute. Washington's Uniform Family Law Arbitration Act (UFLAA) provides a framework for the use of arbitration in resolving family law disputes in Washington state. Accounting Manual for.