Dispute Resolution Methods

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Questions and Answers

What is the key difference between mediation and conciliation?

  • In mediation, the third party makes a binding decision, whereas in conciliation, the parties make their own decision.
  • Mediation is a voluntary submission of disputes, while conciliation is mandatory.
  • Conciliation involves a more active role of the third party, who proposes solutions to the dispute, whereas mediation does not. (correct)
  • Conciliation involves a judicial process, while mediation is an informal process.

When is mediation/conciliation not applied?

  • When the dispute involves complex legal issues.
  • When the parties are willing to compromise.
  • When there is a great imbalance of power between parties. (correct)
  • When the parties have a prior agreement to mediate.

What is a key benefit of mediation/conciliation?

  • It maintains and restores business relationships. (correct)
  • It is a compulsory process.
  • It involves a judicial process.
  • It provides a binding decision.

What is the role of a mediator in a dispute resolution process?

<p>To act as a messenger between the parties. (D)</p>
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How does mediation differ from negotiation?

<p>Mediation involves a third party, while negotiation does not. (A)</p>
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What is the primary difference between a conflict and a dispute?

<p>A conflict is a disagreement between parties, while a dispute involves a breach of contract. (C)</p>
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What is the main reason why Alternative Dispute Resolution (ADR) is preferred over going to court?

<p>ADR is cheaper and quicker than going to court. (B)</p>
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What is the primary role of a third party in negotiation?

<p>To facilitate communication between the parties. (C)</p>
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What is the purpose of a complaint letter in a dispute resolution process?

<p>To initiate the dispute resolution process. (A)</p>
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What is a characteristic of negotiation as a dispute resolution method?

<p>It is a flexible and confidential process. (A)</p>
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Study Notes

Dispute Resolution

  • A dispute arises when there is a contract between parties, a breach of obligations, and disagreement over the breach.

Dispute Resolution Methods

  • Negotiation
  • Mediation/Conciliation
  • Arbitration
  • Court/Litigation

Why Alternative Dispute Resolution (ADR)?

  • Cheaper and quicker than going to court
  • Many people fear the court process, including giving evidence, risk of losing, long duration, and public proceedings

Roles of 3rd Party

  • Negotiation: no third-party involvement
  • Mediation/Conciliation: involves a third party as a messenger or proposal transmitter
  • Arbitration: involves a third party making a binding decision

Negotiation

  • Definition: reaching an agreement by discussion between parties directly communicating with each other
  • Features:
    • Low cost
    • Speed of resolution
    • Confidentiality
    • Flexibility
    • Fairness (win-win)
    • Ability to continue business relationships
  • Documents involved:
    • Complaint letter
    • Evidence (e.g., pre-claim letters, photos)

Mediation/Conciliation

  • Definition: a process involving a third party transmitting and interpreting proposals between disputing parties
  • Mediation:
    • Aims to help parties come to their own conclusion/agreement
    • Mediator remains impartial
  • Conciliation:
    • Quite similar to mediation
    • Conciliator proposes solutions to the dispute
  • Mediation vs. Conciliation:
    • Mediation: parties reach a solution themselves, not given by mediators
    • Conciliation: conciliators propose solutions, usually being professionals in the field
  • Limitations:
    • Not applied when parties are unwilling to mediate/conciliate
    • Parties do not need to continue their relationship
    • Great imbalance of power between parties
    • Overwhelming emotion controls
    • Previous history of broken promises
  • Benefits:
    • Maintains and restores business relationships
    • Resolves disputes cost-efficiently
    • Party autonomy
    • Flexible process
    • Private and confidential

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