Melvin Magadia asked:
Disputes and conflicts can emerge from your business whether it is against a partner, distributor, client, or employee. If left unresolved, these may have a lasting stain on your business relationship.
Depending on the degree and kind of dispute, there are various ways of managing and solving business problems. It is vital that you have knowledge of these methods so that you know what strategy will be most effective in resolving a particular kind of conflict.
Here is a brief description of the various settlement options available to conflicting parties.
â€¢ The most economical way of resolving an issue is direct negotiation. However, while it is easy on the pocket, it does not imply that it provides an easy way out of the dispute. Direct negotiation is ideal in establishing oneâ€™s position regarding the issue at hand.
Here, both sides are given the chance to air their side regarding the conflict. In this method, questioning, observation, and attention are intense. The advantage of this method is that when carefully planned, it can bring about open communication as well as improved negotiating skills.
â€¢ In mediation, a third party is invited to help resolve the issue between the two companies. The third party, which is known as the mediator, has no interest in the affairs of the conflicting businesses. The mediator has no obligation to decide for any of the party.
The resolution of the problem and the settling of differences would be up to the parties concerned. Whatever decision they would come up with should be acceptable to both of them.
Since mediation is a confidential process, the details of the agreement cannot be used in court. When both parties agree to mediation, it could make or break the discussion. If both parties find a way to reach a consensus, with the help of a mediator, things could turn out fine for the conflicting parties.
On the other hand, if no consensus can be reached and the mediation process fails, then the two parties can consider other alternatives available in order to solve the conflict and all the efforts, which both parties exerted, will go for naught.
â€¢ Another possible alternative in conflict resolution is arbitration. Just like in mediation, an arbitrator must come from an outside party, which has no particular interest on either of the parties. The job of the arbitrator is to gather and examine the evidence at hand. After examination, they will then listen to the two sides and then make a legally sound judgment. The contending parties are required to abide to the decision of the arbitrator whether it is for their benefit or not.
Arbitration requires some investigation and gathering of facts since they are based from past events. This method is time consuming and costly unlike mediation. However, it is much cheaper than litigation.
â€¢ If the issue between the disputing businesses cannot be resolved using the alternatives mentioned above, litigation is usually the last resort. Here the decision lies on the judges who base their decision on the facts presented by attorneys acting as the legal representatives of the parties.
Each of these methods has their own pros and cons. Los Angeles business dispute attorneys provide recommendations as to which is the best alternative.
Our experienced business attorneys are knowledgeable in business laws including litigation and business dispute issues. To avail of the expert services of Los Angeles business dispute attorneys, you can log on to our official website and contact us.