1. Settling Disputes
Chapter 4

2. How do we handle conflict?
Conflict is a natural part of everyday life.
How do you handle disputes?

3. Should you take your case to court?
There are disadvantages in going to court to resolve conflicts.
Time-consuming
Expensive
Could make the problem worse
Cause extreme anger and bitterness

4. Methods of Solving Disputes
Negotiation
Arbitration
Mediation

5. Negotiation
the process by which people involved in a dispute discuss their problem and try to reach a solution acceptable to all
Can be formal or informal
Sometimes people attorneys are hired to negotiate for them
Both parties must approve the agreement before it becomes final
Attorneys sometimes file a case in court and then still try to work out an settlement (agreement) before the case goes to trial.
Many civil cases are settled this way – saves time and money

6. Arbitration
Both parties involved in the dispute agree to have one or more persons listen to their arguments and make a decision.
The arbitrator is like a judge, but the process is less formal than a trial.
Have the authority to make the final decision and both parties must follow it
Most common in contract and labor-management disputes
Agreements between unions and the employers include arbitration clauses
The union and the employer agree in advance to submit certain disputes to arbitration and are bound by the resulting decision.

7. Mediation
The act or process of resolving a dispute between two or more parties involving a third party.
Unlike arbitrators, mediators cannot impose a decision on the party.
The agreement is the result of the parties’ willingness to listen carefully to each other and come up with a reasonable settlement.
The mediator acts as a neutral third party by listening to both sides, and offers solutions to resolve the conflict.

8. Practice!
Examine the following situations and decide the best method for solving each problem.
Consider informal discussion, negotiation, arbitration, mediation, going to court, a government agency, and/or other methods.
Explain your answer.

9. Practice
Two sisters share a room. However, they disagree over how the room should be arranged and decorated.
A new stereo breaks after 2 weeks, and the salesperson refuse to fix or replace it.
A landlord will not make repairs because he believes the tenant caused the damage.
A labor union and an employer disagree over the wages and conditions of employment.
A married couple wants a divorce.

10. Practice
The Internal Revenue Service sends you a letter claiming that you owe another $200 in taxes, You disagree.
Carl invites Rachel to prom, and she agrees to go with him. Then Miguel asks her to the prom. Rachel really wants to go with Miguel and accepts his invitation. Carl finds out about her decision after he has purchased flowers and paid for the limousine to take them to prom.