During a contract negotiation, the management of Wild Mist Inc. and its employee union fail to reach an agreement on an issue related to retirement benefits. A neutral third party is called in to come up with a solution, make the necessary decisions, and reach a settlement. The process used by the third party in the given scenario is referred to as_____.
A) fact-finding
B) conciliation
C) arbitration
D) mediation

Question

Quizplus · Accepted Answer

The process described in the scenario, where a neutral third party is called in to make decisions and reach a settlement, is known as arbitration. Arbitration is used when negotiations between two parties fail and a neutral third party is needed to make a final decision. Option A, fact-finding, involves conducting an investigation to gather facts to help parties negotiate a settlement. Option B, conciliation, involves a neutral third party attempting to bring the parties together and facilitate an agreement. Option D, mediation, involves a neutral third party facilitating negotiations between parties to help them reach a voluntary agreement.

During a Contract Negotiation, the Management of Wild Mist Inc