Florida Broker Practice Exam

Which of the following is NOT one of the four settlement procedures when dealing with conflicting demands?

1. Mediation

2. Negotiation

3. Arbitration

4. Litigation

The correct answer is: Negotiation

Negotiation is not considered one of the four primary settlement procedures when dealing with conflicting demands in a more formal legal or regulatory context. The four recognized settlement procedures typically include mediation, arbitration, litigation, and, depending on the context, a fourth option such as collaborative law or similar methods. Mediation involves a neutral third party who facilitates a discussion between the conflicting parties to help them reach a voluntary agreement. It’s a collaborative process aimed at finding common ground. Arbitration is a more formal process where a neutral third party, the arbitrator, makes binding decisions based on the arguments and evidence presented by both parties. Arbitration is often considered a faster and less expensive alternative to litigation. Litigation refers to the process of taking legal action through the court system, which involves formal procedures and can lead to a judgement imposed by a judge or jury. While negotiation is a common approach to resolving disputes, it is typically seen as an informal preliminary step rather than a recognized settlement procedure in the same context as the other options. Therefore, it does not fit within the traditional framework of formal settlement procedures for conflicts.