Arizona Adjuster Practice Exam

Which method of alternative dispute resolution is most similar to civil litigation?

1. Negotiation

2. Mediation

3. Arbitration

4. Conciliation

The correct answer is: Arbitration

Arbitration is the method of alternative dispute resolution that is most similar to civil litigation. In arbitration, a neutral third party, known as the arbitrator, makes a binding decision after hearing arguments and evidence from both sides, resembling the structure and process of a courtroom trial. This process allows for a formal setting where rules of evidence and procedure can be followed, similar to what is seen in civil litigation. In contrast, negotiation involves parties directly discussing terms to reach a voluntary agreement without an intermediary. Mediation, while enabling a facilitator to help parties find common ground, does not culminate in a binding decision like in arbitration. Conciliation also involves a neutral third party but focuses more on reducing tension and improving communications between parties rather than providing a binding resolution. Therefore, arbitration’s characteristics closely align with the formal adjudication process found in civil litigation.