California Independent Adjuster Practice Exam 2025 – Comprehensive Test Prep

In mediation, an impasse occurs when the parties involved are unable to reach an agreement despite discussions and negotiations. This can happen for various reasons, such as significant differences in the views or interests of the parties or the discovery of insurmountable issues that prevent a consensus.

When the mediation process results in an impasse, it signifies that the negotiations have stalled, and the parties have essentially reached a standstill. As a result, they may choose to walk away without a settlement, leading to either a continuation of the conflict or potentially the exploration of alternative methods to resolve their dispute, such as arbitration or litigation.

While other options suggest different outcomes—like reaching an agreement or postponing discussions—an impasse specifically indicates that no resolution has been achieved at that moment. It highlights the limitations of mediation when no common ground can be found, reinforcing the notion that mediation is not a guaranteed path to settlement. When parties choose to file a lawsuit immediately following mediation, it typically indicates a decision to pursue a more formal legal process, rather than a direct outcome of the mediation itself.