Although arbitration is a way of settling disputes without expensive court litigation, it carries with it a central conflict for the state. That is, if the judgments of the arbiter are not supported by the state, then they are not enforceable, and arbitration becomes unworkable. On the other hand, arbitration can frequently be manipulated to maintain inequitable relationships, and the state has legitimate reservations about surrendering or leasing its authority. In this work, Ian Macneil examines the history of the American arbitration legislation that deals with this conflict.