The difference between mediation and arbitration is
A) in arbitration the problem may not be resolved, and mediation is the final step in which the involved parties must come to a resolution.
B) arbitration uses a neutral third party in the negotiations.
C) in mediation the president of the United States has the authority to step in, but not so in arbitration.
D) mediation uses a neutral third party in the negotiations.
E) mediation is a formal hearing, whereas arbitration is an informal discussion of the problem.

Question

Quizplus · Accepted Answer

The main difference between mediation and arbitration is that mediation uses a neutral third party in the negotiations to facilitate communication and negotiation between the parties, but does not impose a decision. In contrast, arbitration also uses a neutral third party, but that party has the authority to make a binding decision to resolve the dispute. Therefore, option D correctly states that mediation uses, but arbitration may not use, a neutral third party in the negotiations. Option A and E are incorrect because they do not accurately describe the differences between mediation and arbitration. Option B is partially correct, but it only defines one aspect of arbitration and does not provide a sufficient contrast to mediation. Option C is incorrect because the president of the United States does not have the authority to intervene in either mediation or arbitration.

The Difference Between Mediation and Arbitration Is