Topic > Business Law - 718

Business owners and managers who are familiar with the litigation system understand that high litigation costs and long delays make it difficult and expensive to resolve business disputes in court. They also understand that most civil cases brought to court are resolved before trial. They are resolved after spending a significant amount of time and money in the complex preliminary investigation phase, but just in time to avoid the risk of trial. Commercial mediation and arbitration provide superior solutions that help resolve commercial disputes. Mediation puts the parties immediately in control of the situation and helps them achieve the desired results without spending huge resources on litigation procedures (Berg, Permanent Court of Arbitration. International Bureau, International Council for Commercial Arbitration, 2005). , support and defend a lawsuit brought by the plaintiff against a business or organization or person intended as a defendant. Litigation is thorny, time-consuming, expensive and involves a risky process that must comply with a complex set of rules. The risks that companies and other organizations face in dealing with litigation are different. First, they face a probability of winning or losing. This is because it is not certain that one party will win. Secondly, the amount of money to win or lose is not defined. Business organizations or individuals run the risk of getting less money than they expect. In fact, they may get little money compared to what they sent into the litigation process. Attorneys' fees and other costs of litigation make the process significantly expensive. Another risk involves the loss of productive time of managers and other staff as… half of paper… above all flexibility comes from the innovation and ingenuity of the parties in developing their arbitration agreement. Since arbitration is a type of contract law, the parties can construct the terms, agreements and parameters that they can use to handle disputes that arise, in the arbitration. Such flexibility is not possible in litigation (Antonio Buti, 2001). In conclusion, traditional litigation systems and arbitrary or alternative dispute resolution techniques offer ways to handle business disputes. However, litigation systems are expensive, time-consuming and rigid, and present many risks, including lack of confidentiality. On the other hand, arbitration is less time-consuming, economical and flexible because it allows parties to draft their own arbitration agreements. Therefore, arbitrary dispute resolution (ADR) techniques are preferable for businesses)..