Podcast
Questions and Answers
What is a necessary condition for a dispute to arise?
What is a necessary condition for a dispute to arise?
- There must be a contract between the parties. (correct)
- There must be a conflict between the parties.
- There must be a breach of contract by one party.
- All of the above
What is a benefit of using Alternative Dispute Resolution methods?
What is a benefit of using Alternative Dispute Resolution methods?
- It is a cheaper and quicker process than going to court. (correct)
- It is a slower process than going to court.
- It is a more expensive process than going to court.
- It is only used for complex disputes.
What is a feature of negotiation as a dispute resolution method?
What is a feature of negotiation as a dispute resolution method?
- It always results in a win-lose outcome.
- It is a low-cost and flexible process. (correct)
- It is a formal and structured process.
- It requires the involvement of a third party.
What is the purpose of a complaint letter in a dispute?
What is the purpose of a complaint letter in a dispute?
Why may dispute resolution methods other than litigation be preferred?
Why may dispute resolution methods other than litigation be preferred?
What is the main difference between mediation and conciliation?
What is the main difference between mediation and conciliation?
Why might mediation or conciliation not be applied in a dispute?
Why might mediation or conciliation not be applied in a dispute?
What is a benefit of mediation and conciliation compared to arbitration?
What is a benefit of mediation and conciliation compared to arbitration?
What is the key difference between negotiation and mediation?
What is the key difference between negotiation and mediation?
What happens if a party breaks an agreement reached through mediation?
What happens if a party breaks an agreement reached through mediation?
Study Notes
Dispute and Dispute Resolution
- A dispute arises when there's a conflict relating to the benefit of the parties, resulting from a breach of contractual obligations and disagreement on the breach.
- Dispute resolution methods include negotiation, mediation/conciliation, arbitration, and court/litigation.
Why Alternative Dispute Resolution (ADR)?
- ADR is cheaper and quicker than going to court.
- Many people fear the court process, including giving evidence, the risk of losing, long duration, and taking place in public.
Roles of 3rd Party
- In negotiation, no third-party involvement occurs, and both parties directly communicate with each other.
- In mediation and conciliation, a third party helps facilitate the discussion and transmission of proposals.
- In arbitration, a third party makes a binding decision.
Negotiation
- Features of negotiation include:
- Low cost (no need to pay for a third party)
- Speed of resolution (both parties know the situation and concentrate on the problem)
- Confidentiality
- Flexibility (time, place, and no formal procedure)
- Fairness (win-win situation)
- Ability to allow the parties' business relationship to continue
Documents in a Claim
- A complaint letter includes:
- Name and address of the parties to the dispute
- Objects of the claim (contract no., order no., B/L no., etc.)
- Specific matters requested to be settled
- Evidence, such as pre-claim letters, may be necessary.
Mediation/Conciliation
- Mediation involves a third party transmitting and interpreting proposals between the disputing parties.
- Conciliation is similar, but the conciliator sometimes advances independent proposals.
- Mediation and conciliation aim to help parties come to their own conclusion/agreement.
- Mediation vs. Conciliation: in mediation, the solution is reached and agreed upon by the parties, while in conciliation, the conciliator proposes solutions.
Mediation/Conciliation Limitations
- Mediation/conciliation is not applicable when:
- Both parties are not willing to mediate/conciliate
- Parties do not need to continue their relationship
- There is a great imbalance of power between parties
- Overwhelming emotions control
- There is a previous history of broken promises
Mediation/Conciliation Benefits
- Maintains and restores business relationships
- Resolves disputes cost-efficiently
- Provides party autonomy and flexibility
- Is a private and confidential process
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Description
This quiz covers the basics of disputes, including the definition of a dispute, the conditions for a dispute to arise, and the different methods of dispute resolution such as negotiation, mediation, arbitration, and court litigation.
