What is the process for resolving business disputes?

In Arizona, the process for resolving business disputes mostly depends on the type of dispute it is. Generally, the dispute resolution process begins with a discussion between the two parties to try and settle the differences amicably. If the two parties are unable to reach a mutually beneficial agreement, then different forms of alternative dispute resolution (ADR), such as mediation and arbitration, may be used. Mediation is a process where a neutral third party helps facilitate a discussion between the two parties, guiding them towards a mutually agreed-upon resolution. In mediation, the third-party mediator does not have the power to make a binding decision, but rather helps the disputing parties come to a resolution that is accepted by both sides. On the other hand, arbitration is a process in which an impartial third-party, or arbitrator, hears both parties’ evidence and arguments and makes a binding decision. The arbitrator’s decision is legally binding, so it is important that the parties have a good understanding of the laws and regulations surrounding the dispute. In Arizona, there are more specialized dispute resolution forums, such as small claim court. Small claim courts are designed to resolve disputes for amounts up to $10,000. In these courts, either party can file a claim and the court will make a decision, usually within a few weeks of filing. In all cases, the first step in resolving business disputes is to exhaust all options of amicably working together. If that does not work, then it is important to be aware of all legal options available in order to ensure that the dispute is resolved in a timely and cost-effective manner.

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