Utah General Contractors - Business and Law Practice Exam

Mediation is a process where a neutral third-party mediator assists the disputing parties in reaching a mutually acceptable agreement. One of the key characteristics of mediation is that it is typically non-binding. This means that the mediator does not have the authority to impose a resolution; rather, the mediator facilitates discussion and negotiation between the parties. Any agreement reached during mediation must be voluntarily accepted by all parties involved, and they are not legally obligated to comply with the mediator's suggestions or potential resolutions unless they choose to formalize an agreement through a subsequent contract.

This non-binding nature of mediation distinguishes it from other forms of dispute resolution, such as arbitration, where the arbitrator’s decision is binding on the parties. In the context of contract disputes specifically, unless the contract explicitly states that mediation outcomes are binding, participants retain the option to either accept or reject the resolution suggested by the mediator.