"Disposition" is not exactly an esoteric or technical word.  Although it
crops up frequently in archival discussions, it's not really specialized
jargon.  To "dispose" of something admittedly often carries the connotation
of discarding, but "disposition" merely describes whatever you decide to do
with it after appraisal, which could include discarding, retention (as in
accessioning, or, if it's already accessioned, determining whther or not to
deaccession), transferring to someone else, etc.  In legal terms, surely
you've read about the "final disposition" of a case, which can include
remanding to trial, throwing it out, etc.  Perhaps "disposition" is used more
often with regard to archival documents than museum objects because you
usually have to inspect, study (i.e., read), and "appraise" (determine the
information or historical value) before you recommend disposition, and
disposition constitutes enacting that recommendation, whatever it is.
Archives often automatically acquire papers after they're retired from active
use, and have to determine disposition if they assume that they can't keep
everything they receive.  In museums, acquisition methodology may be more
selective up front, frequently involving only a single object at a time, so
they know immediately whether they want to accept something offered for sale
or as a gift.  This may simplify the procedure, so a museum may not have to
go through any particular process of appraisal, recommended disposition, and
actual disposition.  I guess that's why you wouldn't encounter the word as
often in museums, although when a museum does study its collections for
possible weeding, the collections committee or registrar will probably use
the word after studying a case, and will recommend disposition--to either
keep the objects or get rid of them somehow.

But to cut to the chase--I think you'll find that this meaning of disposition
is covered by any dictionary.

David Haberstich

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