Utah Contractor Practice Exam

Which term describes the act of negotiating a settlement before going to court?

1. Mediation

2. Arbitration

3. Litigation

4. Collaboration

The correct answer is: Mediation

The term that describes the act of negotiating a settlement before going to court is mediation. Mediation involves a neutral third party who facilitates discussions between the disputing parties to help them reach a mutually agreeable solution without the need for formal legal proceedings. This process is often more efficient and cost-effective than litigation, as it allows parties to communicate openly and collaboratively in a less adversarial environment. In contrast, arbitration is a more formal process where a neutral third party makes a binding decision after hearing both sides. Litigation refers to the process of taking legal action through the court system, where a judge or jury makes a final ruling. Collaboration is a broader term that can apply to various forms of teamwork and partnership but is not specific to legal disputes. Mediation, with its focus on negotiation and voluntary agreement, provides an opportunity for the parties to maintain control over the outcome of their dispute while avoiding the uncertainties of a trial.