Which of the following observations concerning interest arbitration is true?
A) It is most frequently used in the private sector.
B) It is similar to mediation and fact-finding.
C) It assists the parties to reach their own settlement.
D) It decides on binding settlement terms.

Question

Quizplus · Accepted Answer

Interest arbitration is a process where a third party, the arbitrator, hears the arguments and evidence presented by both parties and makes a decision on the final settlement terms. This decision is binding on both parties and cannot be appealed. While it may be used in both the private and public sectors, it is primarily employed in the resolution of labor disputes. It is distinct from mediation and fact-finding in that it involves the arbitrator making a final decision rather than assisting the parties in reaching their own settlement.

Which of the Following Observations Concerning Interest Arbitration Is True