Four Ways To Work Out Business Disputes

Business owners have four options to resolve disputes with partners, vendors or customers. Each option is based on different assumptions, and entails a different cost. Therefore, it pays to understand them better.

Option #1 ? Direct negotiation

Direct negotiation is certainly the cheapest - but not necessarily the easiest ? way to resolve a conflict. A good place to start, is to get clear about what one wants, why, and how much one cares for the future relationship with the other person. The next step, is finding out how the situation looks from the other person's perspective. This task requires effective questioning, listening, and observing. The final negotiation step, is crafting an agreement that both parties believe to be better than all other alternatives.

To negotiate successfully one needs some planning, communication and negotiation skills. Without them, it is easy to end up with no deal, or a bad deal, or even a personal war.

Option #2 - Mediation

The goal of mediation is not to find who is right or wrong, but how the problem at hand can best be resolved. Mediation is a process in which parties who disagree meet with a neutral third-party, who facilitates their negotiations. The mediator doesn't have any decision-making authority. The parties decide how to resolve their problem, in a way that is mutually acceptable.

Since mediation is confidential, mediation discussions and materials are not admissible in court. In a sense, when people mediate they have everything to gain and nothing to lose. If they are able to reach a mutually acceptable agreement with the mediator's assistance, that's great. Otherwise, they can still use the remaining two options. And in that case, whatever they have said or heard, offered or counter-offered during mediation, doesn't matter.

Option #3 ? Arbitration

The business dispute is submitted to a neutral arbitrator, who examines the evidence, listens to the parties and renders a binding decision. The conflicting parties must accept the arbitrator's decision, no matter whether they like it or not. Arbitration is past-oriented, and requires a certain amount of fact-finding. Therefore, generally it takes more time (and money) than mediation, but less than litigation.

Option #4 ? Litigation

The fourth option is to let the judge decide which party is right or wrong, based on the facts and the law. In actuality, though, the vast majority of civil cases never get that far (some statistics say up to 90%). They settle out of court. A few days ? or even hours ? before the trial, the two conflicting parties, assisted by their respective attorneys, prefer to negotiate their own agreement, rather than running the risk of losing in court.

For business owners ? as well as for anyone else - litigation has two major drawbacks. First, it inevitably has a detrimental effect on the future relationship between the parties. Second, it can be quite expensive in terms of time, money and stress. Nonetheless, when a business dispute cannot be resolved any other way, litigation is a valid option.

About The Author

Giuseppe Leone is a Business and Workplace Mediator. Past President of SPIDR (Society of Professionals in Dispute Resolution) Hawaii Chapter. Mediator for Hawaii District Courts. Email: mediationplus@yahoo.com

---

While Youre Waiting

Not long ago, I made a partnership pitch, on behalf... Read More

Communicating Across Time Horizons

There was a time in my life when I sold... Read More

Power Pricing - Getting the Right Price for Your Products and Services

There's an old joke about the New York City blackout.... Read More

The Art of Negotiation in 535 words

I want to get better at negotiation, but where to... Read More

The Ultimate Truth in Persuasion

OK, so you want to improve your persuasion power right?Why?... Read More

How To Communicate Using Space

What Is Proxemics?The study of the communicative aspects of personal... Read More

Negotiation: A Compromising Position

Negotiating is a hot topic these days for a good... Read More

Negotiations: The Art, Science, & Sport of Online Deals

Negotiations can seem as complex as physics, and in fact,... Read More

Ask for More - You May Get More

If you are involved with sales, how do you feel... Read More

How To Make An Inflexible Bureaucrat See You As A Person

Inflexible Bureaucrats Are Characterized by:1. Cares little about your happiness... Read More

Avoiding and Accomodating in Negotiation

The avoiding approach to negotiating is characterized by losing, leaving,... Read More

The Six Rs for Changing MInds and Overcoming Resistance

This article borrows from Howard Gardner's book, "Changing Minds" (2004).... Read More

Managing Conflict, in Life & Work: Using Ancient and Modern Approaches

"Conflict" is a word that can have varying degrees of... Read More

Lets Make a Deal

Smart buyers will always ask for a better price. Unfortunately,... Read More

How To Deal With A Complainer

How To Deal With A ComplainerA Complainer Is Characterized by:1.... Read More

Neogtiation: How to be Right Without Making Other People Wrong

What exactly are we trying to accomplish by proving to... Read More

Games are a Reflection of Behavior

You are standing on a small stage yelling, "What's the... Read More

Resolve Conflict In 6 Easy Steps - The BEDROL Method

The principles of Negotiation can work for you in any... Read More

Can a Service Be a Commodity

Well Enron dealt with this a little for instance an... Read More

Cross Cultural Negotiations

Cross cultural negotiation is one of many specialized areas within... Read More

Barter and Its Benefits

What is Barter? Barter involves 2 parties. Each party wants... Read More

Embarrassed To Discuss Your Prices? Seven Common Reasons We Cant Talk About Them

Last week, a wonderfully-skilled electrician installed a new light fixture... Read More

Do You Want a Paycheck or a Passion? 10 Qualities Managers are Looking for in Hiring You

Based upon my research of over 300 managers in the... Read More

Four Ways To Work Out Business Disputes

Business owners have four options to resolve disputes with partners,... Read More

Guidelines for Ambassador Appointments

Ambassadors to other countries are a vital part of international... Read More

Secrets of the Trade Revealed: Bartering for Business

In its simplest form, bartering involves an equal trade. One... Read More

Dont Be Afraid Of Silence

In any conversation with two or more people, there is... Read More

Negotiate to Your Advantage

The hardest and most important part of any negotiation is... Read More

Negotiating Technology Contracts

Have you ever tried to negotiate a deal for software,... Read More

Negotiating Skills: Ask For More Than You Expect To Get

It creates some negotiating room, and you might just get... Read More

How to Change Somebody?s Mind

Believe me, it's not easy! And sometimes, it doesn't work... Read More

Negotiate Your Way to a Better Salary

1. Be persuasive: It's hard to force your boss to... Read More

Negotiating Tactics: How To Strike A Negotiable Opening Shot

There is no right or wrong to fire up your... Read More