Which term describes using a neutral third party to help the parties reach a voluntary agreement before arbitration is used?

Which term describes using a neutral third party to help the parties reach a voluntary agreement before arbitration is used?

• A. Mediation
• B. Arbitration
• C. Negotiation
• D. Litigation

Answer: (A)

Mediation is the process where a neutral third party helps the disputing sides communicate, explore interests, and craft a voluntary settlement before any arbitration takes place. The mediator facilitates discussion and identifies options that might satisfy both sides, but they don’t make or impose a binding decision. This pre-arbitration step is different from arbitration, where a neutral third party (the arbitrator) issues a binding decision after hearing the case. Negotiation involves the parties talking directly with each other without a neutral facilitator, and litigation means bringing the dispute to court.

Mediation is the process where a neutral third party helps the disputing sides communicate, explore interests, and craft a voluntary settlement before any arbitration takes place. The mediator facilitates discussion and identifies options that might satisfy both sides, but they don’t make or impose a binding decision. This pre-arbitration step is different from arbitration, where a neutral third party (the arbitrator) issues a binding decision after hearing the case. Negotiation involves the parties talking directly with each other without a neutral facilitator, and litigation means bringing the dispute to court.