Question

When a local board of REALTORS® requires that disputes go to mediation first rather than to arbitration, what does this mean for the REALTORS® associated with that board?

a) They must avoid any dispute resolution methods
b) They can choose either mediation or arbitration
c) They must go directly to arbitration
d) They must engage in mediation before arbitration

Answer 1

REALTORS® on a board that mandates mediation first must attempt to settle disputes through mediation before proceeding to arbitration, where a binding decision is made.

Step-by-step explanation:

When a local board of REALTORS® requires that disputes go to mediation first rather than to arbitration, it means that the REALTORS® associated with that board must engage in mediation before they can proceed to arbitration. This process involves a neutral third-party mediator who helps the disputing parties try to reach a voluntary, mutual agreement. This means that before going to arbitration, they must first attempt to resolve their dispute through mediation. If the dispute is not resolved through mediation, then the REALTORS® can proceed to arbitration if necessary. If the dispute is not resolved through mediation, then they can move on to arbitration, where an arbitrator will hear the case and make a binding decision.

Answer: d) They must engage in mediation before arbitration