Question

When two parties resolve a dispute without the intervention of a third party, the method is called as __________.

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

Hint:

The easiest way to differentiate ADR methods: - No third party = Negotiation - Third party helps talk = Mediation/Conciliation - Third party decides = Arbitration

Answer 1

The Correct Option is C

This question is about different methods of Alternative Dispute Resolution (ADR). The key phrase is "without the intervention of a third party." Step 1: Define the different ADR methods. (^) Mediation: A neutral third party (the mediator) facilitates communication between the disputing parties to help them reach a voluntary settlement. The mediator does not impose a decision. (_) Arbitration: The parties present their case to a neutral third party (the arbitrator or a panel), who acts like a private judge and makes a binding decision (an 'award'). (`) Conciliation: Similar to mediation, but the third party (conciliator) can take a more active role in suggesting potential solutions to the parties. (a) Negotiation: The parties communicate directly with each other to try and reach a mutually acceptable agreement. There is no neutral third party involved.

Step 2: Match the definition to the method. Since the method described involves no third party, it is by definition negotiation.