One difference between arbitration and mediation is
that an arbitrator's decision will bind the parties if the
arbitration was agreed to be binding, while a mediator's findings
and suggestions have no binding effect.
Both arbitration and mediation acts as alternative to litigation with respect to solving of contractual or legal disputes.
However, arbitration is more formal process in comparison to mediation.
Arbitration takes place just like anyother regular court proceeding with parties presenting evidence to support their cause and cross-examination also takes place. The decision of arbitrator is legally enforceable and parties have to bound by it.
Mediation is more of bridge building process. Mediation assists in communication between parties and helps in attaining mutually acceptable solution. Mediator does not pass any judgement or order, he or she merely put forward his or her suggestions or findings which parties to the dispute can accept or reject.
Thus, the given statement is True.
Hence, the correct answer is the option (A).
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