In the process of alternative dispute resolution known as __, a neutral third party acts as a “judge” to determine how a conflict will be resolved.
(a) mediation
(b) arbitration
(c) conciliation
(d) collaboration
The Correct Answer and Explanation is :
The correct answer is (b) arbitration.
In arbitration, a neutral third party, known as an arbitrator, acts as a “judge” to determine how a conflict will be resolved. The arbitrator listens to the evidence and arguments presented by both parties and then makes a binding decision, known as an award. This process is more formal than mediation or conciliation and often resembles a simplified court trial.
Key Features of Arbitration:
- Binding Decision: The arbitrator’s decision is legally binding and enforceable in a court of law. This means that once the arbitrator makes a ruling, the parties are obligated to comply with it.
- Formality: Arbitration is more formal than other alternative dispute resolution (ADR) methods like mediation or conciliation. It involves procedures similar to those in a courtroom, including the presentation of evidence and witness testimony.
- Neutral Arbitrator: The arbitrator is a neutral third party chosen by the disputing parties or appointed by an arbitration institution. The arbitrator’s role is to impartially evaluate the evidence and arguments presented and make a fair decision.
- Privacy: Arbitration proceedings are typically private, and the details of the dispute and the award are not made public, unlike court trials.
- Limited Appeal Rights: The grounds for appealing an arbitration award are limited, making the process generally quicker and more final than litigation.
Comparison with Other ADR Methods:
- Mediation: In mediation, a neutral third party, the mediator, facilitates communication between the disputing parties to help them reach a mutually acceptable agreement. Unlike arbitration, the mediator does not make a decision for the parties.
- Conciliation: Conciliation involves a neutral third party who meets with the parties separately to resolve their differences. The conciliator may suggest solutions but does not impose a binding decision.
- Collaboration: Collaborative law is a process where each party hires an attorney, and all parties work together to resolve the dispute without going to court. It emphasizes open communication and problem-solving.
In summary, arbitration is the ADR process where a neutral third party acts as a “judge” to determine how a conflict will be resolved, making it distinct from other methods like mediation, conciliation, and collaboration.