Understanding Business Terms When Facing a Dispute
When you enter into an agreement with a partner, the last thing you want to happen is a dispute that turns into a lawsuit. Time in the courtroom can be expensive, time-consuming, and emotionally draining. Fortunately, there are several ways to solve the dispute before entering the courtroom. Consider the differences between negotiation, mediation, and arbitration:
Business Term: Negotiation
An effective way to settle a dispute is through negotiation. With this alternative dispute resolution, the two people in the conflict will negotiate between themselves or through their representatives to reach an agreement. This leaves the power of the outcome in the parties’ hands instead of in a third party’s hands. However, before sitting down to negotiate, it’s important to meet with a lawyer and discuss settlement details.
Business Term: Mediation
Mediation and negotiation are very similar but with one big difference – a mediator is involved. A mediator is a neutral third party who helps the conflicting parties reach a solution. Normally, the parties are in separate rooms and the mediator will shuffle between rooms to facilitate communication. Using a mediator helps keep emotions and stress to a minimum. The mediator will not impose a resolution but will help guide each party toward a decision that benefits both parties.
Business Term: Arbitration
If both parties cannot come to a resolution, arbitration will need to result. During arbitration, a third party hears both sides of the dispute and decides on behalf of the people. The arbitrator’s decision is final and binding, just like a judge’s decision would be. This type of alternative dispute resolution is very common concerning family law cases, insurance claim disputes, and commercial issues.
Certain scenarios thrive when alternative dispute resolutions are enacted. However, some disputes require traditional litigation. Whether you need a lawyer for arbitration, mediation, negotiation, or litigation, the SPG attorneys are more than willing to help! Contact us today with your questions.