Members of a virtual team cannot decide on a fair way to determine how they get paid for their work on a particular project, since team members live in a number of countries with different standards of living. Thus, they hire a neutral third person to help them reach a non- binding decision on their pay. This is an example of

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This scenario describes mediation, where a neutral third party helps disputing parties reach a non-binding agreement. Unlike arbitration, the mediator does not make a decision for the parties.

Members of a Virtual Team Cannot Decide on a Fair