Business Law Chap2

Business Law Chap2 - Business Law Chapter 3: Dispute...

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Business Law Chapter 3: Dispute resolution Three Fundamental Areas of Law - Litigator – a lawyer who handles court cases Litigation versus Alternative dispute resolution - Litigation – refers to lawsuits, the process of filing claims in court and ultimately going to trial. - Alternative dispute resolution – is any other formal or informal process used to settle dispute without resorting to trial. Alternative dispute resolution (ADR) - NEGOTIATION o The parties negotiate whether personally or through lawyers in most cases. o The majority of cases are solved this way o Begins as soon as cases arises and can last a few days to a several years - MEDIATION o Fastest growing method of dispute resolution in the US o A neutral person called a mediator attempts to coax 2 disputing parties toward a voluntary settlement (can involve 2 or more mediators) o This form of ADR is used before going to court generally o Mediator DOES NOT render decision in dispute but uses a variety of skills to produce the parties toward agreement. Sorts out serious issues, prompts parties and lawyers to consider new perspectives, and looks for areas of agreement. o Mediators must earn trust of both parties, listen closely, try to diffuse anger and fear, and build the will to settle. o Several advantages to mediation Two antagonists can speak freely – no settlement takes place until both parties settle
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In contrast to litigation where one party must settle (win) and the other must lose. Parties do not need to fear conceding too much because no settlement takes effect until both parties sign. All discussions are confidential, encouraging candid talk Most helpful in cases involving proprietary information that might be revealed during a trial . o Mediation offers strongest win-win situation potential Removing the fear of losing encourages thinking and talking that are more open and realistic than negotiations held in the midst of a lawsuit. Studies show that over 75% of mediated cases do reach a voluntary settlement. These agreements are valuable to those who wish to hold a long term relationship o this form of ADR works for big and small disputes. - ARBITRATION o Form of ADR where parties a gree to bring in a neutral 3 rd party, but with a major difference: the ARBITRATOR has the power to impose an award. o The arbitrator allows each side equal time to present its case and after deliberation issues a binding decision, generally without giving reasons. o Unlike mediation, arbitration ensures there will be a final result, although the parties will lose control of the outcome. o Usually faster and cheaper than litigation o Parties give up rights that litigants retain including discovery and class action Discovery – allows the 2 sides in a lawsuit to obtain, before trail, documentary and other evidence from opponent. Permits both sides to keep secret many files that would have to be given in a
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This note was uploaded on 06/29/2011 for the course MGT 3000 taught by Professor Murrmann during the Spring '11 term at Virginia Tech.

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Business Law Chap2 - Business Law Chapter 3: Dispute...

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