Submitted by: Submitted by MARIE
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Category: Business and Industry
Date Submitted: 05/11/2010 12:39 PM
Alternative Dispute Resolution
Riordan Manufacturing operates in both U.S and international markets. As a result, internal and external disputes may arise from the company’s daily operations. Consequently, the Riordan Company considers Alternative Dispute Resolution (ADR) as appropriate methods to settle disputes before costly litigation. Alternative Dispute Resolution is a general term referring to modes of conflict resolution other than those associated with governmental courts and national tribunals (Oxford Reference, 2009). In the event commercial disputes arise, the types of alternative dispute resolution used to settle the disputes are as following: negotiation, mediation, and arbitration.
Negotiation: A negotiation is an informal way for the parties to find a consensus. For instance, if commercial disputes arise between the Riordan Company and a business partner, the most efficient way to resolve differences is to structure an agreement accepted by both parties. In the event the parties do not come to a fair conclusion, the dispute will be submitted for mediation.
Mediation: Mediation is form of alternative dispute resolution in which an independent third party assists the parties involved in disputes to achieve a mutually acceptable resolution of the points of conflict (Oxford Reference, 2009). In mediation, the parties agree on a disinterested third entity to act as mediator. The mediator’s role is to settle the dispute between both parties. A mediator does not impose solutions, but rather facilitates dialogue between the...