ABC Corporation and the union are locked in a dispute that they cannot resolve by themselves. Ms. Reza Shah, a third party, has been asked to help them with a binding decision. She has informed them that the final settlement will be one that either ABC Corporation or the union offers. What is this settlement an example of?
A) binding conciliation
B) compulsory binding arbitration
C) final offer arbitration
D) compulsory conciliation

Question

Quizplus · Accepted Answer

This settlement is an example of final offer arbitration, where a third party chooses between the final offers made by each party, making the decision binding.

ABC Corporation and the Union Are Locked in a Dispute