A procedure in which a neutral person or panel listens to both sides of a dispute and weighs the evidence to reach a decision is called what?

• A. Mediation
• B. Arbitration
• C. Litigation
• D. Negotiation

Answer: (B)

Arbitration is a dispute resolution method where a neutral person or panel hears both sides, weighs the evidence, and renders a decision that is typically binding on the parties. This matches the description because the key element is a third party who evaluates the facts and imposes a resolution, rather than simply helping the parties talk or taking the case to court. Mediation involves a neutral mediator who facilitates discussion but does not decide the outcome. Negotiation is direct bargaining with no third-party decision maker. Litigation takes place in court with a judge or jury making a decision. In arbitration, the decision—an award—is enforceable under the arbitration agreement.