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