No business owner wants to go through a dispute. However, the possibility always exists because of the involvement of individuals with their own mindset, goals and ways of doing things.
The best thing to do when a dispute looms on the horizon is to know how to deal with it promptly while preserving business ties as best as possible. Alternative dispute resolution methods can help with that.
Why keep business ties?
FINRA brings up comparison points between arbitration and mediation. These two options can serve the ultimate purpose of keeping people out of court when handling a dispute. This has numerous benefits, such as saving everyone time and money while also shielding their privacy.
However, one of the most overlooked benefits is that it can help keep business ties intact. A business is built on its relationships. This includes external, such as business to customer, and internal, such as business to manufacturer or partners.
Burning a bridge with another business is one of the fastest ways to ensure that something will come back to haunt later in life. It is best to keep things amicable, which means reducing costs and putting minimal pressure on all involved parties.
Arbitration vs mediation
Arbitration provides the structure of a court case without the long waits, expensive fees, or having to deal with a jury. Personal business does not get put in public records either. The arbitrator will make and hand down the judgment, taking it out of the party’s hands.
Mediation serves parties who feel they can get through their dispute with just a little outside guidance. The mediator cannot make a decision; the parties must work toward it themselves.
Either option will help maintain business ties, so business owners should consider it.