When working as a business owner, one of the biggest building blocks of success is connections. Growing a brand and strengthening a business involves making as many connections as possible, nurturing them and ensuring a mutually beneficial relationship emerges.
Of course, to this end, it is natural to want to avoid resolving disputes by immediately jumping to litigation. But what alternative options are available?
Mediation and its benefits
FINRA discusses the alternative dispute resolution methods available to business owners, and anyone else struggling to resolve a disagreement between parties. Litigation often comes to people’s minds immediately due to the prevalence of court cases in media, but it is far from the only method of solving a disagreement.
Two popular alternative methods include mediation and arbitration, both of which avoid turning personal matters into a court battle. Mediation works best for people who already feel like they have a relatively strong grasp on the situation and do not need too much strict guidance. In it, a mediator acts as a conversational referee of sorts, ensuring that all parties have the chance to have their fair say. They may offer advice and guidance, but cannot produce any legally binding terms.
The uses of arbitration
On the other hand, an arbitrator does have the power to legally bind all parties to an agreement, much like a judge. However, though arbitration resembles the litigation process more strongly than mediation, it avoids court battles. Thus, the information of the involved parties remains private, and no one has to spend money or time on an expensive court case. Depending on the situation, this could serve as a major benefit to everyone.