Final answer:
Mediators do not have legal authority to bind parties to a settlement in an interest dispute, making the student's statement false. They assist in the negotiation process, paving the way for voluntary agreements, unlike arbitrators who can impose binding decisions.
Step-by-step explanation:
The statement that mediators have binding legal authority to require the parties to settle an interest dispute is false. Mediators facilitate negotiation and help clarify priorities and assessment of costs or risks but do not have the legal authority to bind parties to a settlement. That role often falls to an arbitrator or through judicial proceedings if the dispute escalates. In arbitration, the arbitrator makes a determination that can be binding, while mediation seeks a voluntary agreement. In various contexts, like negotiated rulemaking, neutral advisors or convenors may assist parties in reaching consensus on rules affecting their interests without imposing a decision.
Key aspects of dispute resolution involve accessible and impartial decision-making to ensure just outcomes. In political settings, this often requires defining property rights clearly, as highlighted by economist Ronald Coase, which helps streamline negotiations and reduces the risk of ongoing conflict.