| Business owners have four options to resolve | | | | a mutually acceptable agreement with the |
| disputes with partners, vendors or customers. | | | | mediator's assistance, that's great. Otherwise, |
| Each option is based on different assumptions, | | | | they can still use the remaining two options. And |
| and entails a different cost. Therefore, it pays to | | | | in that case, whatever they have said or heard, |
| understand them better.Option #1 - Direct | | | | offered or counter-offered during mediation, |
| negotiationDirect negotiation is certainly the | | | | doesn't matter.Option #3 - ArbitrationThe |
| cheapest - but not necessarily the easiest - way | | | | business dispute is submitted to a neutral |
| to resolve a conflict. A good place to start, is to | | | | arbitrator, who examines the evidence, listens to |
| get clear about what one wants, why, and how | | | | the parties and renders a binding decision. The |
| much one cares for the future relationship with | | | | conflicting parties must accept the arbitrator's |
| the other person. The next step, is finding out | | | | decision, no matter whether they like it or not. |
| how the situation looks from the other person's | | | | Arbitration is past-oriented, and requires a certain |
| perspective. This task requires effective | | | | amount of fact-finding. Therefore, generally it |
| questioning, listening, and observing. The final | | | | takes more time (and money) than mediation, but |
| negotiation step, is crafting an agreement that | | | | less than litigation.Option #4 - LitigationThe fourth |
| both parties believe to be better than all other | | | | option is to let the judge decide which party is |
| alternatives.To negotiate successfully one needs | | | | right or wrong, based on the facts and the law. In |
| some planning, communication and negotiation | | | | actuality, though, the vast majority of civil cases |
| skills. Without them, it is easy to end up with no | | | | never get that far (some statistics say up to |
| deal, or a bad deal, or even a personal war.Option | | | | 90%). They settle out of court. A few days - or |
| #2 - MediationThe goal of mediation is not to find | | | | even hours - before the trial, the two conflicting |
| who is right or wrong, but how the problem at | | | | parties, assisted by their respective attorneys, |
| hand can best be resolved. Mediation is a process | | | | prefer to negotiate their own agreement, rather |
| in which parties who disagree meet with a neutral | | | | than running the risk of losing in court.For business |
| third-party, who facilitates their negotiations. The | | | | owners - as well as for anyone else - litigation has |
| mediator doesn't have any decision-making | | | | two major drawbacks. First, it inevitably has a |
| authority. The parties decide how to resolve their | | | | detrimental effect on the future relationship |
| problem, in a way that is mutually acceptable.Since | | | | between the parties. Second, it can be quite |
| mediation is confidential, mediation discussions and | | | | expensive in terms of time, money and stress. |
| materials are not admissible in court. In a sense, | | | | Nonetheless, when a business dispute cannot be |
| when people mediate they have everything to | | | | resolved any other way, litigation is a valid option. |
| gain and nothing to lose. If they are able to reach | | | | |