What distinguishes mediation from arbitration?

Prepare for CGFM Exam 1 – Governmental Environment. Utilize flashcards and multiple-choice questions with explanations and hints. Ace your exam!

Mediation is characterized as a voluntary and nonbinding process for dispute resolution. Parties involved in mediation choose to participate in the process and can walk away at any time without the obligation to accept any proposed resolutions. This is fundamentally different from arbitration, where the decision made by the arbitrator is binding and enforceable by law.

The voluntary nature of mediation allows for more flexibility and creativity in reaching an agreement that satisfies all parties involved, making it a collaborative rather than an adversarial process. Since the outcome is not imposed by an outside authority, but rather found through mutual agreement, the resolution tends to be more satisfactory for the parties involved, as they have a direct hand in shaping it.

Understanding this distinction between mediation and arbitration is crucial for individuals dealing with conflict resolution, as it highlights the various approaches available and their implications for the parties involved.

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