Chapter 4 Flashcards
What is a Negotiation?
A process of deliberation and discussion intended to reach a mutually acceptable resolution to a dispute, Its quick, cheap, private, and controllable(preserves relationship)
When do you Negotiate?
By consent or contract, can be employed at any stage of a dispute
How do you Negotiate?
Carried out by parties to the dispute, however the parties which to solve their problem
When does the Negotiation end?
When parties reach settlement or reach an impasse: either concede and cut its losses or risk expenditures of more time&money. Disadv: requires an agreement
Who is a Mediator?
A neutral person who helps parties resolve a dispute
How is Mediation used?
In family disputes(divorce), or to settle commercial disputes, Adv: its quick, cheaper than arbitration and lit, preserves relationship,
How does Mediation work?
Mediator don’t impose solutions, they are often lawyers or retired judges
How does Mediation end?
Success rate is 80%, normally will enter a settlement
Who is an Arbitrator?
A third party is appointed to make a decision
What is an Arbitration?
A hearing where parties make submissions and resolution is out of their control, its cheaper and faster than a litigation, can be private
How is Arbitration used?
Capable of resolving any dispute and its by consent or contract
How does Arbitration work?
Arbitrator makes a decision after submissions
How does Arbitration end?
Usually binding decision, with a low chance of appeal, Disadv: can be slow, expensive, may destroy relationship
What is a Litigation?
When plaintiff sues the defendant, should only be used if other methods have failed, Adv: no agreement to proceed, has a final decision. Disadv: slow, stressful, expensive, destroys relationship
What is a Litigation Period?
Time period specified by legislation for commencing legal action
