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§ 1297.362.Authority to Require Party to Accept Settlement Proposed

Title 9.3. Arbitration and Conciliation of International Commercial Disputes · Chapter 7. Conciliation · Article 3. Report of Conciliators · Enacted 1988 · no amendments on record · Last verified July 29, 2026

In one sentenceSection 1297.362 makes clear that no party in conciliation can be compelled to accept a settlement the conciliator or conciliators propose, preserving conciliation's voluntary character.

Full Text of § 1297.362

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No party may be required to accept any settlement proposed by the conciliator or conciliators.

Plain-English Summary

This section is short, but it protects the entire premise of conciliation. No matter how reasonable a conciliator's proposed settlement looks, no party may be required to accept it.

That voluntariness is what separates conciliation from arbitration or litigation. A conciliator can draft a settlement under Section 1297.361, weigh in with a recommendation, and encourage the parties toward common ground, but the final decision to settle -- and on what terms -- always stays with the parties themselves. If a party says no, the conciliator's proposal doesn't bind anyone.

Frequently Asked Questions

Can a conciliator force a party to accept a proposed settlement?

No. Section 1297.362 provides that no party may be required to accept any settlement the conciliator proposes.

What is the point of protecting this voluntary quality of conciliation?

It preserves the core difference between conciliation and binding processes like arbitration or litigation, where a party can be bound by a decision it doesn't agree with.

If a party rejects the proposed settlement, what happens to the conciliation?

The proceedings can continue, or terminate under the rules in Article 6, but the rejected proposal itself has no binding effect on the parties.

Amendment History

Added by Stats. 1988, Ch. 23, Sec. 1. Effective March 7, 1988.

Source & verification. Section text is reproduced verbatim from the Deering's California Codes Annotated / vLex. Enacted by the California Legislature. Last verified July 29, 2026. · Official source
Also known as: party not required to accept settlementvoluntary nature of conciliation