Utah Commercial Arbitration Agreement with the Prerequisites of Negotiation and Mediation
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How to fill out Commercial Arbitration Agreement With The Prerequisites Of Negotiation And Mediation?
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FAQ
Under negotiation, the two parties engage in (possibly arbitrarily long) face-to-face cheap talk. Under mediation, the parties communicate with a neutral third party who makes a non-binding recommendation. Under arbitration, the two parties commit to conform to the third party recommendation.
The process of mediation is usually voluntary. The mediator has no decision making authority. A mediation is less formal than an arbitration. A successful mediation results in the parties reaching an agreement, usually made enforceable by a written agreement (contractual).
Negotiation is the most flexible of all the ADR mechanisms; it is completely under the control of the parties. Mediation while still flexible is a process which the parties are undertaking in the presence of a third party.
Unlike an arbitrator, the mediator is not the decision-maker and does not resolve the dispute ? but rather facilitates communication so the parties can reach a resolution that works for both of them. Mediation is especially useful when opposing parties have a relationship they want to preserve.
Arbitration and mediation are two very different processes that allow parties to resolve disputes outside of court. Mediation involves a facilitated negotiation, whereas arbitration involves a third party decision maker.
Parties exchange information that will assist in reaching a resolution. Arbitrator listens to facts and evidence and renders an award. Mediator helps the parties define and understand the issues and each side's interests. Parties present case, testify under oath.
A major similarity between negotiation and mediation is that no third parties are involved. A party to an arbitration agreement may never be compelled to arbitrate a dispute.
Negotiation: voluntary process in which parties reach agreement through consensus. Consensus means a decision that all can support. Mediation: using a third party to facilitate the negotiation process. (The mediator does not have the authority to impose a solution.)