Litigation vs. Mediation

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Litigation v. Mediation
Alexander is involved in a dispute related to his business.  Alexander is considering legal action.  Why may it be financially advantageous to Alexander’s business to avoid litigation and mediate the case? The expense of time and money associated with Alexander’s business decision to consider legal action can be avoided through mediation per our text book Business Law which suggest that litigation is often an inefficient way to resolve business-related disputes . According to our book, three basic methods that can be implemented are negotiation, mediation, and arbitration (Business Law 3rd Edition,2010, p62-63). Negotiation – a process of compromise by both parties by creating a contract or ending a dispute which involves only these parties in the case (This being the most common of the choices). Mediation – A third person inserted to settle a dispute which commonly occurs in union situations where the parties will continue to deal with one another. Arbitration – A controversy is submitted to a nonjudicial body for a binding decision. This decision making process involves the least amount of time and money than litigation. Without knowing the exact legal issue and with whom the problem exists it is difficult to determine which type of settlement procedure to use. Negotiations or compromise should be the first choice of resolution. This is a personal desire to avoid trouble and courts. Moral and ethical values are the motivating factors to many disputes. Resolution between the two parties is the ideal, but often an outside person is needed to influence and motivate these ideals. If this involves a contract such as with a union disputes then mediation probably is the solution since the settlement is accomplished in a non-confrontational environment. However, if this process doesn’t produce a solution the next alternative would be to proceed to arbitration where nonjudicial body will decide the...
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