What is the difference between mediation and arbitration Mediation is a process where a neutral third party helps parties reach an agreement, while arbitration is a process where a neutral third party makes a binding decision. Mediation is a process where a neutral third party makes a binding decision,while arbitration is a process where a neutral third party helps parties reach an agreement. Mediation and arbitration are the same thing.

The correct statement is:<br /><br />Mediation is a process where a neutral third party helps parties reach an agreement, while arbitration is a process where a neutral third party makes a binding decision.<br /><br />In mediation, the mediator facilitates communication and negotiation between the parties to help them arrive at a mutually acceptable resolution. The mediator does not impose a decision. In arbitration, the arbitrator listens to both sides and then makes a decision that is usually binding on the parties.