Certified Professional Public Buyer (CPPB) Practice Test

What aspect of mediation differentiates it from arbitration?

1. Mediation is less formal

2. Mediation results in binding decisions

3. Mediation involves litigation

4. Mediation cannot use neutral third parties

The correct answer is: Mediation is less formal

Mediation is characterized by its informal nature, which sets it apart from arbitration. In mediation, the process is typically more collaborative and less structured, allowing the parties involved to discuss their issues openly with the assistance of a neutral mediator. This informality encourages communication and negotiation, enabling the parties to reach a mutually acceptable resolution. In contrast, arbitration is a more formal process where an arbitrator makes a binding decision based on the evidence and arguments presented, similar to a court proceeding. Knowing this distinction helps to clarify the roles and approaches of each method in dispute resolution, emphasizing the flexibility and participatory aspect of mediation compared to the structure and authority found in arbitration. The other choices highlight features that do not accurately describe mediation, reinforcing the understanding that mediation is fundamentally about cooperation and flexibility rather than binding decisions, litigation, or the exclusion of neutral parties.