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How do ADRM differentiate?
How do ADRM differentiate?
To know how ADRM (alternative dispute resolution methods) differ, we will study its different types:
- In mediation, the parties are the ones who seek and agree on the solution with the help of a professional and impartial third party, called a mediator. This does not impose or suggest the solution, but rather facilitates communication and understanding between the parties. Its result, whatever it may be, is the result of a voluntary and binding agreement for the parties. It occurs in cases where the conflict is complex.
For example, if two partners have a conflict over the management or distribution of their company’s profits.
- Negotiation, a system where the parties seek and reach a solution, but in this case there is no intervention by a third party. The parties seek to reach an agreement that is satisfactory to both. It is used when the parties have opposing or complementary interests, and seek to reach an agreement that benefits both parties.
If two companies want to establish a commercial alliance, negotiation can be used to define the terms and conditions of the contract.
- Conciliation is similar to mediation, but with an important difference: the third party that intervenes not only facilitates the dialogue, but also proposes a solution to the conflict. This solution is not mandatory for the parties, but it does require their commitment. The result of the conciliation is an agreement based on the recommendation of the conciliator.
For example, if two neighbors have a dispute about noise in their building, conciliation can be used to offer a recommendation based on the law or common sense.
- In arbitration, the solution is imposed by a third party designated by the parties, called the arbitrator. The arbitrator analyzes the case and issues a resolution called an award, which has the same value as a judicial sentence and can be executed in court. The result of the arbitration is an award that is binding and final for the parties. It is usually used for situations that are not serious but do require a quick solution and the parties are willing to comply with the arbitrator’s award.
For example, if two employees have a dispute over the use of a limited resource, such as a printer or a computer, an arbitrator may be used to decide who has priority.