The mediator acts as a third party intermediary who is responsible for keeping the dialog flowing and making recommendations that assist in resolving the dispute. The agreements reached through mediation are binding, but mediators cannot impose their will and make decisions unless all parties agree to the resolution. Small businesses should consider mediation when the following occurs. The parties in the dispute have a desire to continue their relationship after the dispute is settled. The parties want to maintain control over how the dispute is resolved.
Mediation gets people talking.
It gives small business owners a vehicle to communicate and resolve their differences without having to set foot into the rigid, adversarial setting of a courtroom where they no longer control their own destiny. The skills needed for mediation are often quite different from those necessary for arbitration. While an arbitrator must render a decision that favors one party or the other, the mediator is a negotiator and a facilitator that helps both sides reach common ground. Trade organizations within industries often have names of arbitrators who hear industry-specific disputes. Businesses are including ADR clauses in lease agreements, purchase agreements and professional service contracts.