Which conflict resolution method involves a third party who reviews the situation and makes a binding decision?

The method that involves a third party reviewing the situation and making a binding decision is arbitration. In arbitration, the arbitrator acts as a neutral third party who listens to both sides of the dispute and examines the evidence presented. This process is designed to facilitate a resolution without the need for a full trial. After consideration, the arbitrator issues a decision, which both parties are legally obligated to accept and adhere to, making it a binding resolution to the conflict.

In contrast, negotiation is a process where parties communicate directly to reach an agreement, without any involvement from third parties. Mediation involves a mediator who helps facilitate a discussion between parties to help them reach a mutually agreeable solution, but the mediator does not have the authority to make binding decisions. Conciliation is similar to mediation but often involves a more active role of the third party in suggesting terms of an agreement, yet it still lacks the binding authority characteristic of arbitration.