Final answer:
The nonbinding dispute resolution method where a neutral third party aids in reaching a mutual decision is called mediation, distinguished from arbitration where a third party imposes a decision. Mediation emphasizes accessible and impartial dispute resolution. It is often used in labor disputes and international negotiations.
Step-by-step explanation:
The method of nonbinding dispute resolution by which a neutral third party tries to help disputing parties reach a mutually agreeable decision is known as mediation. In cases where an informal approach hasn't been successful and there's no internal mechanism available, a third-party mediator is introduced.
The mediator facilitates discussions and guides the parties towards a consensus, but unlike arbitration, the mediator does not impose a decision. The goal of mediation is to ensure accessible and impartial dispute resolution, where justice is served in a timely manner by neutral decision makers. This process is often used in various contexts, from labor disputes to international diplomatic negotiations, and it exemplifies a method of conflict resolution where political bargaining and negotiation play critical roles.