Paralegal Certification PrepLegal Terminology and ConceptsEasy
A paralegal is assisting an attorney with a civil case where the parties are attempting to resolve their dispute outside of court. They have agreed to present their arguments to a neutral third party who will then issue a binding decision. What form of Alternative Dispute Resolution (ADR) are they utilizing?
- AArbitration
- BNegotiation
- CMediation
- DConciliation
Show answer & explanationAnswer & explanation
Correct answer: A. Arbitration
Arbitration involves a neutral third party hearing both sides and issuing a binding decision. This directly matches the scenario described, where the parties agree to a binding decision from a third party.
Why the other options are wrong
- B. Negotiation involves direct discussions between parties without a third-party neutral, aiming for a mutual agreement.
- C. Mediation involves a neutral third party facilitating communication to help parties reach their own agreement, which is not binding unless agreed upon.
- D. Conciliation is similar to mediation, often involving a third party attempting to soothe tensions and improve communication, but without issuing a decision.
Arbitration
A form of alternative dispute resolution (ADR) where a neutral third party hears both sides of a dispute and issues a binding decision.
- The decision is typically legally binding.
- Less formal and often faster than litigation.
- Can be voluntary or mandatory (e.g., in contracts).
- Parties choose the arbitrator(s).
Memory trick: ADR: Avoid Disputes, Remember Arbitration for Binding rulings.