Most arbitration takes place pursuant to contract, and the arbitrator’s authority is derived from and limited to enforcement of contract terms rather than external law. However, the parties to a contract may specifically incorporate external law provisions, and arbitrators will not generally interpret contracts in ways that are inconsistent with external law. Some arbitrations, particularly those in the public sector, take place pursuant to statute. In such situations, the statute may provide for the application of external law. When arbitrators apply external law they generally are placed in the role of the trier of fact who would otherwise hear and decide the dispute, are bound to apply the law properly, and are subject to review by courts to ensure proper application of the law.