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CS Professional · Arbitration, Mediation and Conciliation · Negotiation Skills and Communication

Sunrise Textiles Pvt Ltd and its supplier Kaveri Yarns are disputing a delayed consignment. Their representatives meet directly, with no third party present, to discuss and settle terms through give-and-take. Which description best fits this process?

The process is negotiation. The parties talk directly and voluntarily, with no neutral third party, and try to reach a mutually acceptable settlement through give-and-take. No one imposes a decision, so it is not arbitration, mediation or adjudication.

  1. ANegotiation, a voluntary and direct communication process aimed at reaching a mutually acceptable agreementCorrect
  2. BArbitration, because a binding decision is imposed by a neutral
  3. CMediation, because a trained neutral facilitates the talks
  4. DAdjudication, because a court decides the rights of the parties

Explanation

Negotiation is a direct, voluntary dialogue between the parties to reach an agreement. No neutral is involved, which rules out mediation. No decision is imposed, which rules out arbitration and adjudication.

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