Omega Inc., an American semiconductor company, made a contract with Delta Inc., a Canadian computer manufacturing company, on 25th September 2017, to manufacture and deliver 1,000 chipsets on 3rd October 2017. However, Omega Inc. failed to deliver the chipsets on the agreed date. Omega Inc. wants to avoid a lawsuit and reach a settlement outside the courts. Delta Inc. agrees to consult a third party to reach a binding decision. Given this information, it can be said that Omega Inc. and Delta Inc. are engaged in _____.

Question

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Omega Inc. and Delta Inc. are engaged in arbitration, which is a process where a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the companies are seeking a resolution outside of court.

Omega Inc, an American Semiconductor Company, Made a Contract with Delta