| Businesses involve contracts, ventures, arrangements, | | | | damages against a party. Both parties are bound to |
| and agreements with other business entities. | | | | agree to the award, this is referred to as the "binding |
| Sometimes, these transactions turn into disputes. | | | | arbitration." The arbitrator's decision is final. |
| Business disputes arise when one or more party fails | | | | 3. Mediation |
| to honor their end of the deal in an agreement. This | | | | Mediation is another form of resolution which aims to |
| causes both parties to argue with each other. This at | | | | make disputing parties reach an agreement. The |
| times leads to legal actions. | | | | parties meet together with a mediator/s. In this case, |
| If all these disputes lead to court actions, every court | | | | the mediator assists them in the negotiation of their |
| all over the United States will be crowded with | | | | differences, but leaves the power to decide between |
| business dispute cases. Hence, the Alternative Dispute | | | | the parties. The parties should be able to come to a |
| Resolution was born. This aims to encourage out of | | | | mutual decision. |
| court settlements instead of litigation processes. | | | | Mediation starts on a joint session and then proceeds |
| The Alternative Dispute Resolution or ADR is a series | | | | to a separate caucus between the mediator and each |
| of positive and organized procedures for resolving | | | | individual party or their attorney. Mediation is strictly |
| disputes with the mutual consent of the parties | | | | confidential. Thus, everything that is said and discussed |
| involved. ADR encourages the parties to engage in | | | | in this process will be held in private and cannot be |
| negotiations to settle the dispute. | | | | deemed admissible in court or in any other |
| Business owners have options in dealing with this | | | | proceedings. |
| matter. They have four options to be precise. These | | | | 4. Litigation |
| are the following: | | | | If the parties cannot settle into an agreement by using |
| 1. Direct Negotiation | | | | an alternative dispute resolution, then their last option is |
| Direct negotiation is a dispute resolution process | | | | to file a civil case in court. The purpose of business |
| wherein the two disputing parties work together and | | | | litigation is to determine which side is right or wrong. |
| come to a resolution on their own. The parties | | | | Majority of business disputes do not go this far since it |
| communicate directly with each other without a third | | | | entails the most drawbacks. The whole process |
| party who shall oversee or help with the dialogue. | | | | involves a lot of work, and consumes substantial |
| This resolution process is the cheapest way to resolve | | | | amount of time and money. However, it is still |
| a conflict. It needs no court fees, attorneys' fees, or | | | | considered a suitable option. |
| other payments. It only requires that the two parties | | | | Nevertheless, most legal actions should not have |
| are there, willing to exchange sides regarding the | | | | happened if only companies did abide with the terms |
| disagreement. This form of resolution calls for | | | | of the business agreements they got involved with. |
| effective planning, communication and negotiation skills. | | | | Hence, it is very advisable to seek the aid of a |
| 2. Arbitration | | | | business lawyer before engaging in any type of |
| This is a resolution wherein the parties in a dispute | | | | business agreement. This to fully understand the |
| refers it to a third party, called the "arbitrators." The | | | | possible advantages or consequences that one may |
| neutral party listens to the problems and arguments of | | | | get from such contacts. |
| both sides, examines their evidence, and renders a | | | | For a better understand about the proper manner of |
| decision (award) after careful analysis. | | | | entering a business agreement, log on to our |
| Arbitration awards are generally an award of | | | | professional Los Angeles lawyers website. |