An officer telling two parties what to do to solve a dispute would be an example of:

An officer telling two parties what to do to solve a dispute would be an example of:

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

Answer: (C)

This item tests how a dispute is resolved by a third party who imposes a binding outcome. In arbitration, a neutral third party listens to both sides and then renders a decision that the parties must follow. The authority to tell the parties what must be done, effectively ending the dispute with a binding order, is the hallmark of arbitration. By contrast, mediation involves a facilitator who helps the parties reach an agreement without imposing a result, negotiation is the parties themselves bargaining directly, and litigation involves a court rendering a judgment after a formal process. So having an officer dictate the resolution aligns with arbitration.

This item tests how a dispute is resolved by a third party who imposes a binding outcome. In arbitration, a neutral third party listens to both sides and then renders a decision that the parties must follow. The authority to tell the parties what must be done, effectively ending the dispute with a binding order, is the hallmark of arbitration. By contrast, mediation involves a facilitator who helps the parties reach an agreement without imposing a result, negotiation is the parties themselves bargaining directly, and litigation involves a court rendering a judgment after a formal process. So having an officer dictate the resolution aligns with arbitration.