Certified Professional Public Buyer (CPPB) Practice Test

What characterizes mediation as a dispute resolution technique?

1. It is mandatory and legally binding

2. It involves a neutral third party

3. It requires public involvement

4. It is a formal court process

The correct answer is: It involves a neutral third party

Mediation is characterized primarily by the role of a neutral third party who assists the disputing parties in reaching a mutual agreement. The mediator does not take sides or make decisions for the parties; instead, they facilitate communication and negotiation, helping the parties to explore their interests and find a resolution that is acceptable to both sides. This method of dispute resolution is designed to be collaborative rather than adversarial, focusing on reconciliation and understanding among the parties involved. It allows the parties to maintain control over the outcome, unlike more formal processes, such as litigation. In mediation, the neutral party’s primary role is to guide the process, support effective communication, and encourage mutually beneficial solutions without imposing any decisions. In contrast, the other options describe elements that do not accurately represent mediation. It is not mandatory or legally binding, but rather a voluntary process. Public involvement is not a requirement of mediation, as it can take place privately between the parties and the mediator. Additionally, mediation is not a formal court process; it is typically conducted outside of the court system, which differentiates it from judicial procedures.