Good Business Management Includes Good Dispute Management

Problems arise every day between businesses, their customers, suppliers, partners and employees. Most of the time these are dealt with quickly and efficiently through common sense. A small percentage, however, escalate into a dispute. Disputes that remain unresolved may start affecting the profitablity and productivity of the business.

The Kit aims to help small business resolve their disputes as quickly and as cheaply as possible, and to implement good business practice with respect to disputes that may arise.

Traditional Dispute Resolution for Small Business

Although small business often have legal recourse in disputes, their access to justice can be constrained by the cost of going to court, the long time and delays before their case is heard, the disparity in the quality of representation and their need to preserve business relationships. In many cases, neither party achieves a satisfactory result from a Court judgement.

The Benefits of Alternate Dispute Resolution

The thrust of the Kit is to encourage and help small business to use 'Alternative Dispute Resolution' (ADR) instead of litigation, where it is appropriate. In most cases ADR can offer low-cost, quick and flexible system for resolving disputes. ADR is a viable alternative to litigation, typically achieving a success rate of around 80%, without costly and time-consuming legal action. For example, some studies show that using ADR in a dispute can cost as little as five percent of the cost of going to court.

ADR processes seek to produce a negotiated settlement between the parties in a manner that encourages common-sense, practical solutions and preserves business relationships. A neutral party (usually a mediator) helps the parties find a settlement that both can agree to, within a fully confidential process.

ADR provides the parties in a dispute with total control over the outcome, removing the uncertainty that comes with a Court case judgement. Where an agreed settlement is not acheived, the, parties retain their full rights to proceed with legal action.

This Kit should help you to resolve your dispute through six simple steps.

Full kit is available from: http://www.dewrsb.gov.au/smallbusiness/advice/resolvingDisputes/default.asp