Question

What approaches could you use to resolve a dispute? Provide two examples and discuss in 100–120 words.

Answer 1

Resolving a dispute

Often the most costly part of resolving a dispute is the time spent dealing with it instead of running your business. Your dispute may be with a customer, supplier, business partner or employee. In each case how you manage the dispute may vary, however there are some key steps you can follow to handle the issue and retain good business relationships.

• Tips to manage a dispute
• Dispute resolution service
• Go to court as a last resort

Tips to help you manage a dispute

1. Compile your facts and evidence
   Document is the key details of the dispute. This could include dates, times, product or service details, warranties, photographs, leases, agreements or contracts and a summary of discussions or previous correspondence between the parties.
   
   Put your documentation in date order and highlight the parts that are most relevant.

2. Keep calm and remain objective Always remain calm, polite and professional in your spoken or written communications. Avoid abusive or emotional language, or laying blame.Try to understand the situation from the other party’s perspective.

3. Think of creative solutions
   Look for a ‘win-win’ solution that restores your business relationship. Make a list of possible solutions to discuss with the other party – be realistic and prepared to negotiate.
   
   Consider how achieving a particular solution (or not achieving it) will impact on your business particularly in terms of time, money and future working relationships.

4. Talk to the other party
   Contact the other party to negotiate a solution. Make sure the person you are talking to has the authority to settle the dispute. Sometimes minor issues can be handled with a phone call while other more complex matters are best dealt with face-to-face.
   
   Listen carefully to what the other party has to say and take notes. Don’t interrupt them while they are speaking, and when they have finished you should respond in a calm and non-threatening manner.
   
   If a solution is agreed to, make sure that you put it in writing and provide the other party with a copy.

5. Formally write to the other party
   If talking doesn’t work, the next stage is to write to the other party outlining your position. This provides another opportunity for the other party to resolve the dispute. It can also be used as evidence of your attempt to resolve the dispute if you need to use another means of resolution.
   
   Any letter should outline the matters in dispute, the steps that have been taking to resolve the matter, the required solution and a timeframe for this to occur. You may also want to include some of your documentary evidence.
   
   Email or post the letter and keep a copy for your records.

6. Seek assistance
   If you are still unable to resolve the dispute after talking and writing to the other party you may need to seek assistance from a third party.
   
   Be very cautious about resorting to litigation. Consider using an alternative method to resolve the dispute such as negotiation and mediation. These services are usually cheaper and less stressful than going to court.

7. We offer a free dispute resolution service.

   Methods of dispute resolution

Our dispute resolution service offers ways of resolving disputes without going to court. These include negotiation or guided resolution, mediation, conciliation or arbitration.

Type of resolution	Description
Guided resolution or negotiation	Guided resolution is a process of negotiation that involves an independent third party who works with both parties to clarify the disputed issues, understand their rights and obligations, and identify possible options to resolve the matter.
Mediation	A voluntary, structured settlement procedure. A mediator is appointed to assist both parties to reach an amicable solution to their dispute. The mediator is not the decision maker and assists the disputing parties to decide on the outcome.
Conciliation	Similar to mediation except a conciliator can provide both parties with a non-binding settlement proposal.
Arbitration	Arbitration usually consists of a tribunal that applies the law and makes a decision by administering an award that is final and binding.

As a first step, subcontractors in the construction industry are advised to check their contract for a dispute resolution clause. If there is one, the stated processes must be followed otherwise you could be technically breaching the contract.

Go to court as a last resort

Taking a disputed matter to court can be an expensive and time-intensive process. You will need to consider the time, money and effort involved (as well as the indirect costs to your business) to make sure it is worth it. Before threatening legal action, get advice from a lawyer and consider all of your options.

EXAMPLE

Dispute resolution takes a number of different forms. Here are brief descriptions of the most common dispute resolution processes:

Divorce Coaching

Divorce coaching is a flexible, goal-oriented process designed to support, motivate, and guide people going through divorce to help them make the best possible decisions for their future, based on their particular interests, needs, and concerns. Divorce coaches have different professional backgrounds and are selected based on the specific needs of the clients. For example, some divorce coaches are financial planners, mental health professionals, lawyers, or mediators who have experience dealing with divorcing clients.

Case Evaluation

Case evaluation is a non-binding process in which parties to a dispute present the facts and the issues to be determined to an experienced neutral case evaluator. The case evaluator advises the parties on the strengths and weaknesses of their respective positions, and assesses how the dispute is likely to be decided by a jury or other adjudicator. The parties may then use this feedback to help reach a mutually agreeable resolution.