An ADR method by which disputing parties use a neutral outside party to examine the issues and develop a mutually agreeable settlement.

• A. Arbitration
• B. Litigation
• C. Mediation
• D. Negotiation

Answer: (C)

Mediation is an ADR method where a neutral outside party helps the disputing parties examine the issues and develop a mutually agreeable settlement. The mediator facilitates conversation, clarifies interests, and explored options, but does not impose a binding decision. This distinguishes it from arbitration, where a neutral decides the outcome, and from litigation, which is a formal court process resulting in a judge or jury ruling. It also differs from negotiation, which occurs directly between the parties without a neutral facilitator. Mediation is typically voluntary and confidential, and it can save time and preserve the relationship between parties, though it doesn’t guarantee a settlement.