Mediation
Chapters in this video
- 0:00 The snake sweater incident: why disputes need alternatives
- 1:15 Core traits of FINRA mediation: voluntary and written agreement
- 2:33 Mediation vs. arbitration: negotiator versus private judge
- 4:08 Binding decision exam trap: facilitator versus imposing authority
- 5:01 When mediation is used: timing and confidentiality rules
- 5:48 Rapid-fire exam recap
What this video covers
- Why mediation requires the written agreement of all parties before it can begin, and why no one can be forced to the table
- The difference between a facilitator and a decision-maker, and why a mediator cannot impose any settlement
- Why mediation is not binding until parties sign a settlement agreement, and either side can walk away before that point
- How mediation stacks up against arbitration on voluntariness, binding status, formality, cost, time, and who controls the outcome
- The 80% plus settlement rate and why firms still use mediation even though it lacks binding force
- When mediation can be used: before, during, or after arbitration, with confidentiality protecting all communications
- The most common exam trap: identifying which process produces a binding decision imposed by a neutral third party (arbitration, not mediation)
Read the full lesson, free
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