Your Guide to Business Dispute Resolution
If you own a small business, you know that disputes are an unfortunate but inevitable part of running it. But did you know that there are ways to resolve disputes without going to court? In fact, alternative dispute resolution (ADR) methods like mediation and arbitration can save you time, money, and stress.
Mediating Your Way Out of a Dispute
Mediation is a process where a neutral third party, called a mediator, helps the parties involved in a dispute come to an agreement. Mediation is a great option because it allows the parties to have control over the outcome of the dispute. It also allows for more flexibility and creativity in finding a solution. And best of all, it’s often faster and cheaper than going to court.
Arbitrating Your Way to a Resolution
Arbitration is similar to mediation, but the neutral third party, called an arbitrator, makes a binding decision. This means that once the arbitrator makes a decision, it’s final and can’t be appealed. Like mediation, arbitration is often faster and cheaper than going to court. And it’s a great option for disputes that involve technical or specialized knowledge.
What happens if the other party doesn’t want to go to mediation or arbitration? That’s where a well-drafted contract comes in. By including a clause that requires ADR, you’re setting the stage for a peaceful resolution of any disputes that may arise. And even if the other party doesn’t agree to ADR at first, they may be more willing to try it once a dispute arises.
Contracts Are an Ounce of Prevention
Another important aspect to consider is trying to prevent disputes from arising in the first place. You can accomplish this by having well-written contracts that clearly outline the terms of the agreement and by communicating clearly with your clients, suppliers, employees, and partners.
Disputes are a natural part of doing business, but they don’t have to end in costly and time-consuming litigation. Alternative dispute resolution methods like mediation and arbitration can save you time, money, and stress. And by including ADR clauses in your contracts and preventing disputes from arising, you can focus on what you do best: running your business and maximizing your profits.
Keep in mind that, as a business owner, it’s always a good idea to consult with a legal professional to ensure you’re taking the right steps to avoid disputes and protect your business.
- June 22, 2023
- General Counsel
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