Which settlement procedure results in a binding award after a hearing?

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

Answer: (C)

Arbitation is the process where a neutral arbitrator hears the evidence and arguments and then issues a binding award that resolves the dispute. The key is that the decision is final and enforceable, with limited options to appeal in many cases. Mediation, on the other hand, is a non-binding step aimed at reaching a voluntary settlement through facilitation; there is no binding decision unless the parties later sign an agreement. An Escrow Disbursement Order simply directs the release of funds held in escrow and does not determine the merits of the dispute. Litigation results in a court judgment or verdict, which is binding but comes from a court trial rather than a private, arbitrated award after a hearing. Because the question specifies a binding award after a hearing, arbitration is the correct process.