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Exam CFE - Law topic 1 question 62 discussion

Actual exam question from ACFE's CFE - Law
Question #: 62
Topic #: 1
[All CFE - Law Questions]

Which of the following is the MOST ACCURATE statement about the different types of alternative dispute resolution?

  • A. In an arbitration proceeding, the arbitrator acts as a judge or jury by deciding the dispute at issue on its merits.
  • B. The decisions reached in all arbitrations are always binding.
  • C. The agreements reached in mediations are generally nonbinding.
  • D. In a mediation session, the mediator decides who should win the dispute at issue.
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Suggested Answer: B 🗳️

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_denw
4 months, 1 week ago
Selected Answer: C
Mediation is when a neutral third party (mediator) helps both sides talk and reach an agreement. But the mediator doesn’t decide anything, and the agreement is usually nonbinding — unless both parties choose to sign a binding contract.
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