Law I / Resolving Disputes
Practice question · Multiple choice

Mediation and arbitration both involve a neutral third party, yet they belong to fundamentally different dispute-resolution categories. What determines this conceptual divide, and what does it mean for the parties involved?

Hints
  1. Who holds the authority to determine the legal outcome in each process?
  2. Does the mere intervention of an external facilitator alter who decides the dispute?
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B. The neutral party only possesses adjudicative power in arbitration

Why

Confusing the presence of a third party with the power to impose an outcome ignores the core distinction of decision-making authority. Outside the judiciary, private neutrals can still render binding decisions in arbitration, while mediators solely assist party-driven resolution.

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