When you own a Mississippi small business, the odds of you finding it involved in some type of business dispute at some point is high. Business disputes often involve a contract, shareholder, employment or fraud issues, among others, and, in some cases, they may cost your company quite a bit of time and money.
However, not every business dispute has to bankrupt your business or have a serious impact on its productivity. Harvard University outlines three common methods today’s companies use to resolve modern business disputes.
1. Through mediation
Resolving your business dispute through mediation may save you considerable money and time. In mediation, an impartial mediator hears both sides of the issue, giving everyone a chance to tell their side. Then, he or she tries to help everyone agree on a resolution to the problem.
2. Through arbitration
Arbitration also involves opposing parties working with an unbiased third party. However, unlike in mediation, an arbitrator hears both sides and then makes a binding decision. A mediator’s opinion is just that – an opinion, meaning it is not legally binding.
3. Through litigation
When you litigate a business dispute, all sides secure their own legal representation and then face off with one another in a courtroom. Litigation may take more time and money than arbitration or mediation. Yet, sometimes, it may be the only way to resolve an issue.
There are many considerations involved in choosing how to resolve your business dispute, such as whether you wish to preserve the business relationship and whether you want the ruling to be legally binding.