There are effective ways to resolve disputes other that having them decided in court. Using these methods can reduce the time and expense of resolving business disputes.
Business Dispute Negotiation. Without question, the most effective way to resolve a dispute is through direct negotiation. Negotiation is the least expensive alternative and is the most likely method the parties can use to salvage an strained business relationship.
Negotiation. Without question, the most effective way to resolve a dispute is through direct negotiation. Negotiation is the least expensive alternative and is the most likely method the parties can use to salvage a strained business relationship.
Mediation. Mediation is an informal process where a trained, neutral mediator facilitates negotiation. The mediator listens to both sides of a dispute and then attempts to guide the parties to a mutually agreeable resolution. The mediator encourages the parties to compromise, but does not decide who "wins." Courts usually require the parties to attempt mediation before a case can go to trial.
Arbitration. Arbitration is more formal than mediation. One or more neutral arbitrator considers evidence from the parties, much as a judge and jury do in a lawsuit. The arbitrator reaches a decision. In "binding" arbitration, the arbiter's decision is usually final. In "non-binding" arbitration, the parties decide whether to accept the arbiter's decision. Typically, arbitration procedures are more streamlined than court procedures, which usually reduce expenses and fees when compared to litigation. Case can be resolved more quickly using arbitration. The parties have to agree to arbitration, but today many contracts contain arbitration provisions where the parties agree to arbitrate any disputes that might arise.