What is the method of negotiation involving a neutral third party to reach a mutually-agreeable solution?

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

Answer: (B)

Mediation is the method of negotiation that involves a neutral third party to facilitate a discussion between the disputing parties in order to help them reach a mutually-agreeable solution. In mediation, the mediator does not make decisions for the parties or impose solutions; instead, they guide the process and assist in communication to help each party express their needs and interests. The ultimate goal is to encourage collaboration and compromise, allowing for a resolution that is acceptable to all involved.

In contrast, arbitration typically involves a third party making a binding decision after hearing arguments from both sides, which is different from the more collaborative and non-binding nature of mediation. Litigation refers to the process of taking disputes to court, where a judge or jury makes a decision on the matter based on the law, often involving more formal legal procedures. Conciliation is similar to mediation but may involve a more active role from the conciliator in suggesting solutions, which can blur the lines of neutrality compared to traditional mediation.