There are several types of dispute resolution including informal interest based mediation, rights-based mediation and arbitration. Most mediation is conducted on a voluntary basis. It is considered by many to be a cheaper, faster and a less risky alternative to litigation and is finding broader acceptance as community based Dispute Resolution Centers become established around the country. Unfortunately, even in cases where it is required by the courts, simply showing up for the scheduled session satisfies the obligation whether or not any actual negotiation takes place.The less formal, interest based mediation requires two (or more) parties to agree to come together with an impartial mediator to seek solutions to their dispute. While the parties may initially see little opportunity to resolve their dispute, they often view it as a better approach then going to court. In these cases, the interests and issues of the parties are articulated and a number of possible alternatives are explored. Products of these negotiations may be verbal or written agreements. They may be informal between the parties or take the form of a formal, documented agreement enforceable by a court of law. The form of the agreement is negotiable by the parties.Rights based mediation is an examination of the facts of a case by an expert in the relevant field and the evaluation of the rights of the parties under some pre-existing set of rules (such as generally accepted accounting principles). (Common Ground, 1999) In these cases the mediator renders a decision which may be accepted by the parties. It is often a preliminary step before the case is heard by a court. This form of mediation is usually mandated as a part of the court process.Arbitration is a more formalized approach usually written into a contract or previous agreement as the method of choice for resolving future disputes. This process resembles rights based mediation but references the terms of the contract instead of an external set of rules. The findings or products of arbitration are often binding, but in some cases may be voluntary and considered a preliminary step to litigation. They also become subject to litigation if one of the parties to a dispute fails to abide by the agreement. Parties often agree to arbitration before any dispute arises.
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