Final answer:
The claim that mediation is the most commonly used third-party dispute resolution method is false, with arbitration often taking precedence due to its binding authority.
Step-by-step explanation:
The statement that mediation is the most commonly used third-party interest dispute resolution procedure is false. While mediation is a widely used method, arbitration is often considered more common in practice, especially in the business context. Mediation involves a neutral third-party to facilitate a resolution between the disputing parties. However, the mediator does not have the authority to impose a binding decision, unlike an arbitrator in an arbitration proceeding.
When internal mechanisms fail, and an informal approach is insufficient, parties may seek mediation. If mediation does not achieve a resolution, they might then move on to arbitration, where the arbitrator has the authority to make a binding decision on the matter. Another related context is found in history, where diplomatic methods, such as those used by Madison in finding peaceful solutions to international disputes, can be considered early forms of mediation.