An attorney with a long and impressive track record, Tracey is helping to resolve a dispute between an inventor and a large corporation that he claims has stolen his idea. After a great deal of argument from both sides, Tracey receives offers from both sides. The inventor asks for damages of $3 million, royalties of 10 percent on the invention for the next 10 years, and a written apology, whereas the company offers to pay $1.25 million, with royalties of 7 percent for 5 years, as well as a written apology. After considering both offers and the arguments behind them, Tracey determines that the company's offer is fair, and an agreement is reached. This is an example of

Question

Quizplus · Accepted Answer

Mediation requires a third party to facilitate the dispute resolution process, though this third party has no formal authority to dictate a solution. Arbitration occurs when a third party determines a binding settlement to a dispute. In conventional arbitrations, arbitrators can create a solution of their choosing, mixing and matching available alternatives. In contrast, in final-offer arbitration, each party presents its most fair offer, and the arbitrator chooses the offer identified as most reasonable.

An Attorney with a Long and Impressive Track Record, Tracey