What outcomes can result from mediation in dispute resolution?

Mediation is a voluntary and collaborative process where parties work together to resolve their disputes with the help of a neutral third party, known as a mediator. The primary goal of mediation is to facilitate communication and negotiation, allowing the parties to explore solutions and come to a mutual agreement that satisfies both sides.

The correct choice indicates that mediation can lead to a mutual agreement between the parties involved. This outcome is often preferred in many disputes as it allows for a resolution that addresses the interests and needs of both parties rather than a decision imposed by a judge in a courtroom setting. Mediation empowers the parties to create tailored solutions that may not be available in a traditional legal context.

In contrast, not all outcomes of mediation result in legally binding decisions. While the parties may choose to draft a formal agreement that can be enforceable, the mediation process itself does not inherently give rise to such binding outcomes. Referral to arbitration or a direct court ruling may occur as separate processes but are not intrinsic results of mediation. Mediation is intended to foster cooperation and resolution rather than leading directly to adversarial steps like arbitration or court rulings.