Which alternative dispute resolution method involves a neutral party to assist in settling disputes?

Mediation is the alternative dispute resolution method that involves a neutral party to facilitate communication and assist the disputing parties in reaching a mutually acceptable settlement. In mediation, the mediator's role is to guide the discussion, help clarify issues, and encourage compromise, but they do not impose a decision on the parties. This process is often seen as collaborative, allowing the parties involved to maintain control over the outcome.

In contrast, arbitration involves a neutral arbitrator who makes a binding decision after hearing both sides, resembling a courtroom setting but with more informality. Litigation is the process of resolving disputes through the court system, which can often be adversarial and time-consuming. Negotiation involves direct discussion between the parties to reach an agreement without the involvement of a neutral third party, which differs from the mediator's role in guiding the dialogue.

Understanding these distinctions highlights why mediation is characterized by the presence of a neutral facilitator aiming for consensus rather than making a binding decision or solely relying on direct negotiations between the parties.