Which party has the authority to bind others in a legal dispute?

Study for the CLEP Business Law Test. Engage with flashcards and multiple choice questions, each question has hints and explanations. Prepare effectively for your exam!

An arbitrator is a neutral third party chosen by the disputing parties to resolve their conflict outside of the court system. In arbitration, the parties agree to submit their dispute to the arbitrator, who then has the authority to review the evidence, listen to the arguments, and make a binding decision on the matters at hand. This means that the decision made by the arbitrator is enforceable by law, and both parties are required to adhere to it.

The role of the mediator, in contrast, is to facilitate discussions between the parties to help them reach a mutual agreement; however, mediators do not have the authority to impose a decision on the parties. The defendant is a party being sued or accused in a legal action, but does not have the authority to bind others. A juror is a member of the jury who listens to evidence presented during a trial and helps determine the outcome based on that evidence, but jurors do not have the power to bind parties in a dispute outside the context of their verdict. Thus, the arbitrator is the only party among those listed who possesses the authority to bind others in a legal dispute through a conclusive decision.

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