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

Sunrise Textiles Pvt Ltd and its supplier Kaveri Yarns are in a price dispute. Their representatives meet voluntarily, with no third party present, to discuss the dispute and try to reach a mutually acceptable settlement. Which description best fits this process?

The process is negotiation. It is a voluntary, direct discussion between the parties themselves, with no neutral third party, aimed at reaching a mutually acceptable settlement. Mediation needs a facilitator, while arbitration and adjudication involve a third-party decision.

  1. ANegotiation, a voluntary process of direct communication between the partiesCorrect
  2. BMediation, as a neutral facilitator guides the discussion
  3. CArbitration, as the parties agree to settle the dispute
  4. DAdjudication, as a decision is imposed on the parties

Explanation

Negotiation is direct, voluntary communication between the parties aimed at a mutually acceptable settlement. No third party is involved here, so it is not mediation. Arbitration and adjudication involve a third party deciding the matter, which is absent.

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