Which procedure involves appointing a mediator who helps parties reach an agreement but has no power to impose a decision?

• A. Mediation
• B. Escrow Disbursement Order
• C. Arbitration
• D. Litigation

Answer: (A)

Mediation is a dispute-resolution process where a neutral third party helps the sides talk through their issues and work toward a settlement, but the mediator has no power to impose any decision. The key idea is that the outcome is driven by the parties themselves through negotiation, with the mediator guiding discussion, clarifying interests, and helping generate options that both sides can accept. This contrasts with arbitration, where an arbitrator listens to the case and issues a binding decision, and with litigation, where a judge or jury makes and enforces a ruling. An Escrow Disbursement Order, on the other hand, is a procedural directive about releasing funds held in escrow and does not involve a mediator guiding negotiations or rendering a settlement.