Though no one wants to deal with a business dispute, this is an inevitable possibility when dealing with other people in a business setting.
If you do come across such issues, how can you cope with them? If you want to avoid litigation, what options are available?
Arbitration and mediation
FINRA does a comparison between mediation and arbitration. These two options can allow you to skip over litigation, i.e. the costly and time-consuming process of taking a case to court.
Arbitration is closer to litigation and an arbitrator holds similar powers to a judge. They preside over the case and listen to everyone present their side of things. Then, based on that knowledge, they make a decision that all parties must agree to and follow.
Mediation is a little bit of a looser format. A mediator does not have the power to tell anyone what to do with their situation. They will simply listen to everyone discuss things and help guide the discussion with advice and opinions. They can also step in to de-escalate a situation if someone starts getting out of hand.
Avoiding litigation
Why do you want to avoid court in the first place? Simply put, a court case will cost a lot of time and money and will almost surely result in hurt feelings. This can burn bridges, and in the business world, this is one of the last things you want to do.
There are plenty of ways to handle any dispute that may happen. But for the good of your business and your ties, mediation or arbitration could fit the bill perfectly.
