Explain the difference between conciliation and arbitration as methods of dispute resolution. - VCE - SSCE Legal Studies - Question 5 - 2003 - Paper 1

Conciliation and arbitration are both alternative methods of resolving disputes that involve the intervention of a third party.

Conciliation involves a third party who assists the disputing parties in reaching an agreement. The conciliator does not have the authority to make a binding decision; instead, they suggest solutions and help facilitate communication between the parties. The outcome is not legally binding unless both parties agree to it.

Arbitration, on the other hand, involves a third party making a decision for the disputing parties. The arbitrator listens to both sides and then renders a decision that is legally binding. This means that the parties are obligated to follow the arbitrator's decision, and failing to do so can result in legal consequences.

In summary, the key differences lie in the role of the third party and the binding nature of the outcome: conciliation aims for an amicable agreement with non-binding suggestions, while arbitration results in a binding decision made by the arbitrator.