As a business owner, you will inevitably come across potential disagreements and other business tangles in your time. While many may think they need to turn to litigation right away, that is not always the case.
In many instances, you could and should take a look at alternative methods for resolving your disputes. But just what are these methods and how can they serve your purposes?
What purpose does arbitration serve?
FINRA discusses the differences between alternative dispute resolution methods like arbitration and mediation. Arbitration serves as a close stand-in for litigation, filling some of the most important roles while still costing you less time and money.
An arbitrator serves a similar position as a judge, listening to all sides of a case present their arguments and evidence. From there, they serve a legally binding decision that all parties have an obligation to follow. However, you do not need to have the case reviewed by a jury of your peers, so you do not need a court date, saving you a lot of costs and waiting time.
Who does mediation work for?
But what if you do not need even this much structure? Some business disputes toe the line of what you can or cannot feasibly handle on your own. In these cases, you may want to take a look at mediation instead. A mediator does not hold the power of a judge or arbitrator. They simply provide guidance through a civil discussion, ensuring all parties have their say and tempers do not run too high.
They can also chip in with their unique third-party perspective, offering advice and tips. Though they cannot make a decision on what to do on your behalf, they can still ensure you and the other parties reach an amenable agreement.