10 Questions
What is the key difference between mediation and conciliation?
Conciliation involves a more active role of the third party, who proposes solutions to the dispute, whereas mediation does not.
When is mediation/conciliation not applied?
When there is a great imbalance of power between parties.
What is a key benefit of mediation/conciliation?
It maintains and restores business relationships.
What is the role of a mediator in a dispute resolution process?
To act as a messenger between the parties.
How does mediation differ from negotiation?
Mediation involves a third party, while negotiation does not.
What is the primary difference between a conflict and a dispute?
A conflict is a disagreement between parties, while a dispute involves a breach of contract.
What is the main reason why Alternative Dispute Resolution (ADR) is preferred over going to court?
ADR is cheaper and quicker than going to court.
What is the primary role of a third party in negotiation?
To facilitate communication between the parties.
What is the purpose of a complaint letter in a dispute resolution process?
To initiate the dispute resolution process.
What is a characteristic of negotiation as a dispute resolution method?
It is a flexible and confidential process.
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
This quiz covers the definition of disputes and the various methods of dispute resolution, including negotiation, mediation, arbitration, and court litigation. It also explains the benefits of Alternative Dispute Resolution (ADR).
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
