The characteristic distinguishing negotiation from arbitration, as discussed below, is that it is a consensual process. In negotiation, the parties have ultimate control over the outcome. Mediation is a voluntary procedure initiated by the parties in an attempt to resolve their dispute with the help of a mediator, who serves as a neutral third party. The mediator facilitates the discussion between the parties in an effort to assist them in finding a satisfactory solution. The mediating process is an informal one in which the neutral third party helps two or more opposing parties resolve a dispute or plan a transaction but does not ordinarily have the power to impose a solution.
Arbitration is typically a binding procedure.
The arbitrator is similar to a judge in that he or she is expected to render a binding decision. In most cases, arbitration is procedurally less formal than traditional litigation, but more formal than mediation. A summary jury trial is a non-binding condensed trial meant to encourage settlement through the use of a jury. Typically, the parties to this kind of trail agree on certain restrictions on time, discovery, evidence, experts, etc. Often there is also a limitation on the time allotted to question witnesses.