CFE – Law — Question 19

Which of the following is the MOST ACCURATE statement about the different types of alternative dispute resolution?

Answer options

• A. In an arbitration proceeding, the arbitrator acts as a judge or jury by deciding the dispute at issue on its merits.
• B. The decisions reached in all arbitrations are always binding.
• C. The agreements reached in mediations are generally nonbinding.
• D. In a mediation session, the mediator decides who should win the dispute at issue.

Correct answer: B

Explanation

Option B is correct because in arbitration, the decisions made are indeed binding unless otherwise specified. Option A is misleading as it implies that arbitration outcomes are not binding. Option C is true but not the most accurate statement about arbitration. Option D is incorrect because mediators facilitate dialogue and negotiation rather than making decisions on the outcome.