You are currently viewing 4 Business Dispute Solutions

4 Business Dispute Solutions

When you are part of running a business, it is only inevitable that you may have to deal with a dispute between you and shareholders, partners, customers, suppliers, or anyone else with a stake in your company. From the moment you know that you want to start a business and on, you have to prepare for the chances of legal problems arising in the future. You have to know how to get through disagreements in order for your business to truly succeed. 

There are numerous reasons why a business conflict may arise. Perhaps it just has to do with delivering the incorrect product, or one of the parties failed to uphold their end of a contract. Whatever the cause may be, business disputes must be handled promptly, professionally, and with a cooperative spirit. Here are four common solutions that are used to resolve business disputes: 

#1 Litigation

When the court system is part of resolving a business dispute, this is referred to as litigation. In this setting, the verdict of the issue will be decided by a jury or judge. The jurisdiction where the litigation will happen depends on where the lawsuit was filed. As a business litigation lawyer from Eric Siegel Law explains, court resolution, or litigation, may be the ideal approach if both parties live in the same location, the outcome of the dispute is more important over how quickly the resolution can be reached, and when confidentiality of the dispute is not a concern for the parties involved. 

#2 Arbitration

One of the most popular approaches for business dispute resolution is arbitration. If there is a disagreement between a bank and borrowers, or employee unions and companies, then they can reasonably expect to file for arbitration. When entering arbitration, a third party plays a neutral role and is appointed by the parties involved to listen to every side of the case. Scenarios where arbitration is preferable are when the parties want to keep the dispute private, are motivated to avoid prolonged legal processes, or want a beneficial resolution that satisfies all.

#3 Negotiation
A meeting in person between the parties through their legal representatives may be effective in reaching a resolution. Negotiation can be used at any point throughout a settlement process or ongoing litigation. It isn’t rare for the disputing parties to request negotiation as the court trial date gets closer, and it is often because the parties realize that they do not want their privacy to be exposed, along with the fact that litigation can cost time and money for everyone involved. 

#4 Mediation

With mediation, the parties in dispute will meet with a neutral mediator who will offer options that are mutually beneficial, but there is typically no legally binding choice that the parties have to accept in mediation. Like arbitration, mediation may be used to resolve disagreements quicker than litigation can offer. But the outcomes of mediation can vary greatly, and may not be successful if not all the parties are willing to compromise for the sake of ending the dispute.