Reading: (CU1 M2) Mediation
You should have seen from Figure 4.1 that mediation is further along the continuum from negotiation to litigation in terms of being somewhat more adjudicative and formal. Note that with mediation, we introduce a neutral third party. Litigation also has a neutral third party, which is the judge. However, a mediator's authority is much more limited than the judge's. When a mediator is used, the parties still need to agree on a resolution. Keep in mind that the voluntary nature of mediation can be both a strength and a weakness.
Please read The Legal and Ethical Environment of Business: “Chapter 4: Section 2: Mediation” (Links to an external site.)Links to an external site. (PDF)