AAERT Certified Electronic Reporter (CER) Practice Test

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What is the process called when an impartial party resolves a dispute and can issue a final decision?

Mediation
Arbitration
Conciliation
Litigation

The correct answer is: Arbitration

The process where an impartial party resolves a dispute and has the authority to issue a final decision is known as arbitration. In arbitration, the parties involved present their cases to the arbitrator, who then makes a decision that is usually binding. This means that the parties are required to abide by the arbitrator's decision, which provides a clear and definitive resolution to the dispute. Mediation and conciliation involve third parties facilitating discussions between disputing parties, but neither has the authority to make a binding decision. Instead, the goal of these processes is to help the parties reach a mutually acceptable agreement. Litigation, on the other hand, refers to the process of resolving disputes through the court system, which can be a lengthy and public process. Arbitration, however, is often seen as more efficient and confidential, making it a preferred option for many types of disputes.