What does "mediation" involve?

Mediation involves a process where a neutral third party assists disputing parties in reaching a mutually agreeable solution. This method is characterized by its informal nature, allowing the parties involved to communicate directly and collaboratively with the help of the mediator. The mediator does not impose a decision but rather facilitates dialogue, helping the parties explore their needs and interests to find common ground. This is particularly beneficial as it often leads to solutions that are acceptable to all parties, preserving relationships and saving time and resources compared to more adversarial approaches.

In contrast, the other options describe different legal processes. A court ruling involves a judge making decisions based on the law, which is not what occurs in mediation. The formal process where a judge makes all decisions aligns with litigation, not mediation. A legal transaction between two businesses refers to contractual agreements or negotiations, which are also distinct from the mediation process, as those do not necessarily require the involvement of a neutral third party to settle disputes.