Distinguish mediation from arbitration in conflict resolution.

• A. Mediation is facilitated negotiation with agreement by parties; arbitration is a third-party decision imposed on the parties.
• B. Mediation imposes a decision; arbitration is informal negotiation.
• C. Mediation is a court ruling; arbitration is a party-led discussion.
• D. Mediation and arbitration are the same.

Answer: (A)

The key distinction is who controls the outcome and how the process unfolds. In mediation, a neutral facilitator helps the parties talk through the issues, explore options, and craft a settlement they all agree to. The mediator does not decide the outcome; any resolution comes from the parties’ voluntary agreement, so it’s collaborative and non-binding unless the parties themselves sign an agreement. In arbitration, a neutral arbitrator hears the dispute and then issues a decision called an award that is binding on both sides; this imposes a result similar to a court ruling, but it’s private and handled outside the public court system.

So, the description that mediation involves facilitated negotiation with agreement by the parties, while arbitration involves a third-party decision imposed on the parties, accurately captures the difference. The other statements misstate the roles or the nature of each process—for example, mediation isn’t about imposing a decision, and arbitration isn’t just informal negotiation.