California Contractors License Law Practice Exam 2025 - Free Contractor License Practice Questions and Study Guide

Question: 1 / 400

What happens during mediation as a method of dispute resolution?

A third party makes a binding decision

Both parties negotiate with assistance from a mediator

Mediation is a collaborative process where both parties involved in a dispute come together to negotiate with the assistance of a mediator. The mediator acts as a neutral facilitator, helping to guide the conversation and enabling both sides to express their concerns and interests. The goal of mediation is to find a mutually acceptable resolution that satisfies both parties, rather than imposing a decision on them.

This process encourages open communication and allows for creative solutions that might not be available in a more adversarial setting, such as arbitration or court proceedings. Because mediation is non-binding, both parties retain control over the outcome and are not obligated to agree to anything that does not meet their needs. This collaborative nature distinguishes mediation from other dispute resolution methods where a third party might impose a decision or one party dominates the presentation of their arguments.

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The contractor gives up their claims

Only one party presents their case

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