What is the term for the proceeding that occurs when two parties try to resolve their dispute with attorneys before going to trial?

Prepare for the Legal Environment of Business 1 Exam. Utilize flashcards and multiple choice questions with detailed explanations. Sharpen your knowledge for the test and enhance your legal understanding in business!

The term that refers to the process in which two parties aim to resolve their dispute with the aid of attorneys before proceeding to trial is indeed negotiation. During negotiation, representatives of each party, often attorneys, communicate to reach an agreement favorable to both sides without the need for judicial intervention. This is an important step because it allows parties to retain control over the outcome and can lead to a more efficient resolution than going through the court system.

While mediation, arbitration, and litigation are also methods of dispute resolution, they have distinct characteristics. Mediation involves a neutral third party who helps facilitate a resolution but does not impose a decision. Arbitration, on the other hand, is a more formal process where an arbitrator hears both sides and makes a binding decision. Litigation refers to the process of taking legal action in court, which is typically the last resort after negotiation and other resolution methods have failed. Thus, negotiation effectively captures the direct communication aspect between the parties, making it the accurate choice for this particular context.

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