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Question 6
Describe two dispute resolution methods that are used by courts.
Step 1
Answer
Mediation involves the use of a neutral third party, known as a mediator, who facilitates discussions between the parties. The role of the mediator is to assist the parties in reaching an agreement by exploring options and encouraging open communication. It is a voluntary process, meaning both parties must agree to participate. Mediation is often employed in courts as a pre-trial procedure to help resolve disputes without proceeding to formal litigation.
Step 2
Answer
Arbitration is a more formal dispute resolution process than mediation. In arbitration, a neutral third party, referred to as an arbitrator, listens to both sides of the dispute and makes a binding decision. The parties agree beforehand to abide by the arbitrator's decision, which is typically considered final. Courts may use arbitration for disputes involving smaller amounts, as it offers a quicker and more cost-effective alternative to traditional court proceedings.
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