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ACCA Applied Skills · Corporate and Business Law (Global) · Alternative dispute resolution mechanisms

Which feature most clearly distinguishes conciliation from arbitration?

A conciliator cannot impose a binding decision; the parties keep control and decide whether to settle. An arbitrator, by contrast, issues a binding award. Conciliators need not be judges, and the process is normally private rather than public.

  1. AThe conciliator cannot impose a binding decision on the partiesCorrect
  2. BThe conciliator must be a qualified judge
  3. CThe process is always conducted in public

Explanation

A conciliator helps the parties reach agreement and may suggest terms, but has no power to impose a binding outcome, unlike an arbitrator. Conciliators need not be judges, and ADR is typically private.

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