Asked by Monique Brown on Jun 21, 2024

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Final offer arbitration is generally believed to encourage the parties to negotiate more than conventional arbitration because it is riskier for negotiators to present extreme final offers.

Final Offer Arbitration

A dispute resolution process where each party presents their final offer, and the arbitrator chooses one, without the option for modification.

Conventional Arbitration

A dispute resolution process where a neutral third party makes a binding decision to resolve a conflict between parties, typically used when other forms of negotiation have failed.

Negotiate

The process of discussing terms and conditions between parties with differing interests to reach a mutually acceptable agreement or compromise.

  • Identify the distinctions among several dispute resolution techniques, including arbitration, fact-finding, and med-arb.
  • Investigate the influence of various bargaining approaches and methods on negotiation results.
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PR
Preston RossiJun 21, 2024
Final Answer :
True
Explanation :
This is because the final offer in final offer arbitration is binding and non-appealable, which means there is a higher risk for both parties in presenting an extreme offer. This incentivizes both parties to negotiate towards a more reasonable and mutually acceptable outcome.