Alternative Dispute Resolution - Essay Example

The decline in the reliability of the court system has increased the popularity of the alternative dispute resolution method (McHugh 56). The judicial settlement of conflicts has often been associated with cost and this is the main factor that makes it inappropriate for business conflict resolution. Arbitration, collaboration, and mediation are the three methods of alternative conflict resolution (Law info web). These methods are applied to settle various business conflicts depending on their suitability.

Mediation involves the use of an independent mediator. The mediator mediates the different parties involved in the conflict by providing a solution that is appropriate to the concerned parties. The successful negotiations in 1997 between the World Bank and the mining sector serve as a good illustration of the usefulness of mediation as a method of dispute resolution. This case involved the World Bank and the mining industry with the delays in disbursement of funds being their main conflict. In this conflict, the Ukraine Mediation Group (UMG) acted as the mediator between the two parties. With UMG’s mediation, the two parties settled for the restructuring of the mining industry as a fundamental solution to their problem. Periodical disbursement of the disputed funds was also part of the solution. This case gives an example of how mediation can be applied to resolve business conflicts effectively.

Arbitration is the second important method of alternative conflict resolution. In this method, parties involved in a conflict agree to do or not do something voluntarily (Jaffe and Stamato 16). Similar to mediation-arbitration require the presence of an impartial party or person to stand between the parties involved in the conflict. Arbitration has often been regarded as the most appropriate method of resolving business conflicts in relation to the speed of finding a working solution. Unlike the previous form of conflict resolution, arbitrations may take place even before the actual conflict occurs. The signing of an employment contract is an example of arbitration between an employer and an employee. In this arbitration, the employer and the potential employee agree on their working condition and define their relationship. This process does not involve the judicial system or any application of the law. In a situation when the involved parties go beyond the boundaries of their contract, their agreement is used as their reference point.

There are different levels of disputes. At each level, a dispute is resolved using a particular method. This implies that mediation and arbitration might not solve all business disputes amicably. Collaborative law is the third conflict resolution method that is applied in solving business disputes. This type of dispute resolution method is often referred to as family law due to its common application in resolving conflicts involving family members. Unlike the other two methods, this method does not involve a mediator or a neutral party. In this method, consultants assume the role of a mediator (Law info web). Most conflicts resolved through this method are often resolved by formulating a solution that perfectly fits the situation or the parties involved. A conflict resulting from the dissolution of partnerships is a good example of conflicts that can be resolved using the collaborative law technique.