Which of the Following Is a Difference Between Mediation and Arbitration

question 22

Multiple Choice

Which of the following is a difference between mediation and arbitration?

• A) Mediation is a nonbinding structured process, whereas arbitration is a binding process.
• B) Mediation is done in front of a panel, whereas arbitration is facilitated by an independent third party.
• C) Mediation is generally time-consuming, whereas arbitration takes significantly less time.
• D) Mediation is completely flexible, whereas arbitration is comparatively rigid.

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Definitions:

Investments

Assets or items that an individual or entity purchases with the expectation that it will generate income or appreciate in value over time.

Moral Hazard

The risk that a party insulated from risk may behave differently than if they were fully exposed to the risk.

Underpricing

Underpricing refers to setting the initial sales price of a new product or service below market value, often used to attract customers quickly.