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Mac sells Tom a car. Tom refuses to pay, claiming that Mac sold him the car, knowing that the transmission was defective. Rather than go to court, Mac suggests mediation and Tom suggests arbitration. What, if anything, is the difference?

Tom fails to file a response to the Complaint. Mac can obtain a................?

Arbitration is binding, mediation is not. So the arbitrator can compel the parties to perform (just a like a judge). A mediator will try to get the parties to agree on a solution, but can't force them to.

In mediation, all parties work together to acheive a common goal and a mutual agreed upon decision. In arbitration, a third party will gather the information and come to a decision that the other two parties must follow.

In mediation, the third neutral party has no authority. He or she is just on the same level as Tom and Mac.

In arbitration, the arbiter has authority, like a judge. The decision made is binding, and has to be followed.

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