Which of the following best describes the term "fiduciary"?

The term "fiduciary" refers to an individual who has a legal and ethical responsibility to act in the best interest of another party. This concept is commonly found in legal and financial contexts, where one party (the fiduciary) holds a position of trust and is expected to prioritize the interests of the other party (the principal or beneficiary). This duty often arises in relationships such as that between a guardian and a ward, a trustee and a beneficiary, or a financial advisor and a client.

The defining characteristic of a fiduciary relationship is the requirement for the fiduciary to exercise care, loyalty, and good faith in all dealings concerning the interests of the other party. This ensures that decisions made are for the benefit of the other party rather than the fiduciary's own interests.

In contrast, the other options describe different roles that do not encompass this specific obligation of loyalty and trust. For example, while a mediator facilitates negotiation between parties in a dispute, they do not have the same legal responsibility to prioritize one party's interests over the other's. An arbitrator makes decisions in disputes and may hold a neutral position, but they, too, do not operate under the fiduciary duty framework. Likewise, a person dispatched with a legal issue does not