What is the designation of a third party in a negotiation who has the authority to dictate agreement terms?

The designation of a third party in a negotiation with the authority to dictate agreement terms is an arbitrator. An arbitrator is an individual or entity appointed to settle disputes between parties by making a binding decision, which the involved parties are obligated to accept. This role is essential in arbitration processes, where the parties agree to submit their disagreement to the arbitrator rather than pursuing litigation in court.

Unlike mediators, who facilitate discussions and help parties find common ground without imposing decisions, or negotiators, who represent the interests of one party during discussions, arbitrators have the responsibility to hear evidence and arguments from both sides and render a decision. This decision typically resolves the matter and carries the same weight as a court judgment.

Facilitators guide the interaction between groups without having the authority to make binding decisions. They help to streamline communication and ensure that discussions are productive, but they do not dictate terms or reach conclusions that both parties must accept. Therefore, understanding the distinct roles of these third parties is crucial in recognizing why arbitrators specifically have the power to dictate terms in negotiated agreements.