As a business owner, one of the most stressful situations you could face is one in which you are handling a business dispute.
Fortunately, there are ways of dealing with it that will make it less difficult on a whole. But what are those steps and exactly how will they help?
FINRA examines two of the most popular alternative methods of resolution for disputes. This includes arbitration and mediation.
Arbitration is much closer to litigation in that an arbitrator holds a role similar to a judge. They oversee the proceedings, listen to all parties present their arguments and evidence, and come to a final verdict. This decision will legally bind all parties, who must abide by it.
By contrast, mediation does not involve such strict parameters. A mediator cannot enforce their ruling on any party. They can, however, offer important insight and opinions from a unique perspective. They also have training in de-escalation and conflict management, allowing parties to have productive conversations and reach a reasonable and agreeable conclusion on their own.
Both of these options allow for parties to avoid the trials of litigation. Business owners want to avoid this not only because of the time and money spent but also due to privacy reasons. When a case goes to court, that record then goes into a public file which anyone can request access to. This can put information on display that no one wants out there.
On top of that, avoiding litigation can help keep business ties intact. It is a much less stressful method and the people who undergo it will often feel less ill will toward one another as a result.