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Questions and Answers
What is the key difference between mediation and conciliation?
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 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?
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?
What is the role of a mediator in a dispute resolution process?
How does mediation differ from negotiation?
How does mediation differ from negotiation?
What is the primary difference between a conflict and a dispute?
What is the primary difference between a conflict and a dispute?
What is the main reason why Alternative Dispute Resolution (ADR) is preferred over going to court?
What is the main reason why Alternative Dispute Resolution (ADR) is preferred over going to court?
What is the primary role of a third party in negotiation?
What is the primary role of a third party in negotiation?
What is the purpose of a complaint letter in a dispute resolution process?
What is the purpose of a complaint letter in a dispute resolution process?
What is a characteristic of negotiation as a dispute resolution method?
What is a characteristic of negotiation as a dispute resolution method?
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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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