Alternative ways to resolve a conflict


Options in Resolving Business Disputes

Businesses involve contracts, ventures,award of damages against a party. Both
arrangements, and agreements with otherparties are bound to agree to the award,
business entities. Sometimes, thesethis is referred to as the "binding
transactions turn into disputes.arbitration." The arbitrator's decision
Business disputes arise when one or moreis final.
party fails to honor their end of the3. Mediation
deal in an agreement. This causes bothMediation is another form of resolution
parties to argue with each other. Thiswhich aims to make disputing parties
at times leads to legal actions.reach an agreement. The parties meet
If all these disputes lead to courttogether with a mediator/s. In this
actions, every court all over the Unitedcase, the mediator assists them in the
States will be crowded with businessnegotiation of their differences, but
dispute cases. Hence, the Alternativeleaves the power to decide between the
Dispute Resolution was born. This aimsparties. The parties should be able to
to encourage out of court settlementscome to a mutual decision.
instead of litigation processes.Mediation starts on a joint session and
The Alternative Dispute Resolution orthen proceeds to a separate caucus
ADR is a series of positive andbetween the mediator and each individual
organized procedures for resolvingparty or their attorney. Mediation is
disputes with the mutual consent of thestrictly confidential. Thus, everything
parties involved. ADR encourages thethat is said and discussed in this
parties to engage in negotiations toprocess will be held in private and
settle the dispute.cannot be deemed admissible in court or
Business owners have options in dealingin any other proceedings.
with this matter. They have four options4. Litigation
to be precise. These are the following:If the parties cannot settle into an
1. Direct Negotiationagreement by using an alternative
Direct negotiation is a disputedispute resolution, then their last
resolution process wherein the twooption is to file a civil case in court.
disputing parties work together and comeThe purpose of business litigation is to
to a resolution on their own. Thedetermine which side is right or wrong.
parties communicate directly with eachMajority of business disputes do not go
other without a third party who shallthis far since it entails the most
oversee or help with the dialogue.drawbacks. The whole process involves a
This resolution process is the cheapestlot of work, and consumes substantial
way to resolve a conflict. It needs noamount of time and money. However, it is
court fees, attorneys' fees, or otherstill considered a suitable option.
payments. It only requires that the twoNevertheless, most legal actions should
parties are there, willing to exchangenot have happened if only companies did
sides regarding the disagreement. Thisabide with the terms of the business
form of resolution calls for effectiveagreements they got involved with.
planning, communication and negotiationHence, it is very advisable to seek the
skills.aid of a business lawyer before engaging
2. Arbitrationin any type of business agreement. This
This is a resolution wherein the partiesto fully understand the possible
in a dispute refers it to a third party,advantages or consequences that one may
called the "arbitrators." The neutralget from such contacts.
party listens to the problems andFor a better understand about the proper
arguments of both sides, examines theirmanner 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



1 A B C 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86