Arbitration differs from negotiation or mediation in that it is:

Arbitration differs from negotiation or mediation in that it is:

• A. Far more formal; a specialist arbitrator is appointed and the final decision is binding; can be enforced or appealed in the High Court.
• B. Always faster and cheaper than litigation.
• C. The mediator makes the final decision.
• D. It is identical to litigation but resolved outside court.

Answer: (A)

Arbitration is a formal process in which a neutral arbitrator or panel hears the dispute and issues a final, binding decision. That binding result is what sets it apart from negotiation or mediation, where the third party helps parties talk or facilitates an agreement but does not impose one. The award from arbitration can be enforced in court as if it were a judgment, and parties can challenge it only on limited grounds in the High Court. This combination of a formal process, a specialist decision-maker, and a binding outcome that can be enforced in court is the defining difference. Other statements don’t fit because mediation or negotiation does not produce a binding decision by a third party, and arbitration is not simply like litigation even though it may resemble it in procedure. It also isn’t guaranteed to be faster or cheaper than going to court, as costs and timelines vary.

Arbitration is a formal process in which a neutral arbitrator or panel hears the dispute and issues a final, binding decision. That binding result is what sets it apart from negotiation or mediation, where the third party helps parties talk or facilitates an agreement but does not impose one. The award from arbitration can be enforced in court as if it were a judgment, and parties can challenge it only on limited grounds in the High Court. This combination of a formal process, a specialist decision-maker, and a binding outcome that can be enforced in court is the defining difference.

Other statements don’t fit because mediation or negotiation does not produce a binding decision by a third party, and arbitration is not simply like litigation even though it may resemble it in procedure. It also isn’t guaranteed to be faster or cheaper than going to court, as costs and timelines vary.