When the business relationship develops, the dispute occurred is inevitable choices form of dispute settlement and ensure beneficial to traders while maintaining business relationships is something traders should consider.
Current law recognizes the dispute resolution methods in the following business: negotiation, mediation, arbitration and the courts. Accordingly, the occurrence of business disputes, the parties may resolve the dispute through direct negotiations with each other. In case of non-negotiable, the resolution of the dispute can be done with the help of third parties through the mediation, arbitration or court.
The settlement of disputes in the home based business is an important principle of self-determination rights of the parties. State agencies and commercial arbitration only intervene at the request of the parties to the dispute.
In terms of the market economy, business, commerce increasingly diverse and constantly growing in all areas of production, trade, services and investment ... The problem selection method dispute resolution in the business, commercial parties should be considered, appropriate selection based on factors such as goals achieved, the nature of the dispute, the business relationship between the parties, time and costs for the settlement of disputes. Therefore, when choosing the mode of settlement of disputes, the parties need to understand the nature and consider the advantages and disadvantages of a method for rational decisions.
As the method claimants first choice and in practice the vast majority of business disputes, trade is solved by this method. The State encourages the application mode of negotiation to resolve disputes in a spirit of complete respect for the rights of the parties to the agreement.
As the negotiations the parties resolve the dispute with the assistance of a third party as a mediator. The result of mediation depends on the goodwill of the parties to the dispute and prestige, experience and skills of the mediator, the final decision of the dispute resolution is not a mediator of that entirely of the disputing parties.
This form of settlement has many advantages: bad practices mediation is conducted fast, low cost, the parties have the right to self-determination, choice of any person as mediator and venue of the peace solution. They are not constrained in terms of time as in the proceedings in court. Mediation friendly nature to continue to maintain and develop business relations for the benefit of both parties. Mediation is the desire of the parties to settle the case that no party is losing, do not lead to a situation of confrontation, such as the process of winning in court litigation.
This form of settlement is particularly effective when dealing with business disputes, commercial and technical nature (build, finance ...). Because of that, the parties to the dispute are absolutely right to take the initiative in finding a mediator have enough knowledge to participate in dispute settlement. But in practice in court litigation, the parties do not have a choice unless officials solve some cases to change the jury in accordance with the law. One other important thing that the home business is also very interested in resolving this way the internal control documentation relevant evidence (business secrets) while addressing the court at the these requirements can not be guaranteed by the courts exercise jurisdiction under the principle of openness.
Aside from the popular point of view, resolution of disputes by conciliation methods still exist certain shortcomings: Mediation can be carried out or not depends on the agreement of the parties, the mediator does not have authority to make a binding decision or impose any particular problems for the parties to the dispute settlement agreement is not mandatory to implement as the verdict of the judge or of the court. This procedure is rarely used, if the parties do not trust each other.
Settlement of disputes by arbitration is a form of dispute resolution are indispensable in the market economy and is increasingly popular home business. It is a form of dispute resolution through the work of the Council of the arbitrator or arbitration as an independent third party to resolve disputes contradiction by offering valuable ruling required the parties debtors.
The advantage of this form of dispute resolution that has the flexibility to make the initiative to the parties; fast, saving time can shorten the arbitration proceedings and ensure confidentiality. The referee in charge of settling disputes on the principle of judgment, arbitral awards are not made public and widely. According to this principle they can keep business secrets as well as honor and his reputation. Arbitration is not limited in terms of territory by the parties may choose any arbitration center to resolve their disputes. The ruling of the arbitration to be final, this is the superiority compared to forms of dispute resolution mediation negotiations. After the arbitrator ruled, the parties have no right to appeal against any organization or court.
Cons: Settlement by arbitration method requires relatively high costs, solving business the longer it is the higher costs of the arbitration. The enforcement of an arbitral award is not always smooth and convenient as the execution of judgments and decisions of courts.
The dispute brought to trial in court has many advantages but also the disadvantages and advantages of this form of dispute resolution through the courts is: Do the judicial authorities of the State, the ruling court high enforceable. If not will be forced to abide by, so when the court gave the benefit of the person in whose favor would be guaranteed if the losing party has assets to judgment.
However, the choice of this method also has certain disadvantages because in court procedures due to lack of flexibility was required by law before. Besides, the principle of public trial court but the principle is considered progress, but the deterrent nature can sometimes be obstacles to business trade secrets are being revealed.
Because of the disadvantages of this form of dispute resolution court rarely selected merchants and traders generally consider this method your final choice when the mode of negotiation, mediation, the referee is not effective.