Final answer:
The process in which disputes are settled by agents with recognized authority is known as adjudication, a formal legal decision-making procedure that results in a judgment or court decision.
Step-by-step explanation:
The cultural knowledge that people use to settle disputes by means of agents who have recognized authority is called adjudication. Adjudication refers to the legal process by which an arbiter or judge reviews evidence and argumentation, including legal reasoning set forth by opposing parties or litigants to come to a decision which determines rights and obligations between the parties involved.
Unlike arbitration, which is a less formal process where a third-party makes a binding decision; or mediation, where the third party helps the disputants to reach a mutually satisfactory agreement; adjudication results in a formal judgment or decision of a court.