What is Alternative Dispute Resolution for Small Businesses?
Small businesses are often faced with legal disputes. But, they may not have the resources to go to court. Alternative Dispute Resolution, often called ADR, can be a cost-effective and efficient way to resolve these disputes.
In this article, we seek to explore Alternative Dispute Resolution for small businesses in Nigeria. Let’s begin.
Types Of Alternative Dispute Resolution For Small Businesses
There are four main types of Alternative Dispute Resolution for small businesses. Let’s take a close look at each of them.
- Negotiation
This is the simplest form of ADR. Parties involved in the dispute meet each other. Sometimes, they meet their lawyers and make efforts to reach an agreement.
- Mediation
Mediation involves a mediator. A mediator is a third party that maintains a neutral position in the case of a dispute. Such helps the parties involved to reach an agreement.
Note that the mediator does not decide or create the agreement. Rather, he effectively communicates and negotiates to see to it that both parties agree.
- Adjudication
This is a more formal process. Parties involved in a dispute present their evidence to an arbitrator. It’s the arbitrator that decides about the dispute based on the evidence found.
- Arbitration
This is the most formal type of ADR. Parties involved in the dispute agree to have their dispute resolved by an arbitrator. This further implies that the arbitrator’s decision is binding on the parties.
Right now, let’s examine the benefits of Alternative Dispute Resolution For Small Businesses.
Benefits of Alternative Dispute Resolution For Small Businesses
1. Cost-savings: ADR can save small businesses money on legal fees.
2. Time-saving: ADR can save small businesses time by resolving disputes more quickly than litigation.
3. Privacy: ADR is confidential, which can be important for small businesses that want to protect their trade secrets or other sensitive information.
4. Control: ADR gives the parties more control over the outcome of the dispute.
5. Flexibility: ADR can be tailored to the specific needs of the parties.
Alternative Dispute Resolution For Small Businesses can be a good option for several reasons.
Conclusion
It is often less expensive than going to court, and it can be faster and more efficient. ADR can also help to preserve the relationship between the parties involved in the dispute.
If you are a small business owner in Nigeria and you’re facing a legal dispute, consider ADR, as it may be a good option for you.
References:
1)https://www.myhrtoolkit.com/blog/business-mediation-how-does-it-help-smes-hr-blog accessed 22nd August 2023
2)https://www.digitalsme.eu/alternative-dispute-resolution-for-smes-in-sbs-wipo-seminar/ accessed 22nd August 2023
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