How does mediation differ from arbitration?

Mediation and arbitration are both forms of alternative dispute resolution (ADR) and are used as alternatives to going to court. However, there are several differences between the two. One of the most important differences between mediation and arbitration is that mediation is a voluntary process, while arbitration is a binding process. In mediation, the parties can freely choose to participate or not, whereas in arbitration, the disputing parties are bound by a contract, statute, or court order to participate and comply with the outcome. Another difference is that mediation is less formal than arbitration. This means that parties in mediation can craft their own solution to the dispute and the mediator is there to facilitate the discussion. In arbitration, however, the arbitrator or panel of arbitrators will issue a decision after a formal hearing. Finally, mediation is non-binding, meaning that either party can choose to not accept the outcome. In arbitration, the parties are legally bound to the decision of the arbitrator. In summary, mediation and arbitration are both useful methods of alternative dispute resolution. However, the primary differences between the two are that mediation is voluntary, less formal, and non-binding, while arbitration is mandatory, formalized, and legally binding.

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