Resolving Disputes

Mediation, arbitration and small claims courts are three ways small businesses can resolve disputes without resorting to the expense and time of a lawsuit.

Because an agreement arrived at through mediation does not have to be binding to the disputing parties, it is a more informal process that offers more potential for the parties to work together in the future. Arbitration does result in a legally binding decision; the arbitrator functions like a judge and the proceeding is more like a traditional court case. However, like mediation, it does not involve the time and expense of a court case.

A third option is small claims court. Each state operates its own small claims court and sets its own limit on the dollar amount that can be awarded.

Other Topics In This Section

• Mediation
• Arbitration
• Small Claimes Court