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