Chapter Outline
2.1 Negotiation
2.2 Mediation
2.3 Arbitration
Introduction
Learning Outcome
•
Explain the theory, practice, and law of disputes and resolution.
2.1
Negotiation
We frequently engage in negotiations as we go about our daily activities, often without being consciously
aware that we are doing so. Negotiation can be simple, e.g., two friends deciding on a place to eat dinner, or
complex, e.g., governments of several nations trying to establish import and export quotas across multiple
industries. When a formal proceeding is started in the court system, alternative dispute resolution (ADR), or
ways of solving an issue with the intent to avoid litigation, may be employed. Negotiation is often the first
step used in ADR. While there are other forms of alternative dispute resolution, negotiation is considered to be
the simplest because it does not require outside parties. An article in the Organization Behavior and Human
Decision Processes defined negotiation as the “process by which parties with nonidentical preferences
allocate resources through interpersonal activity and joint decision making.” Analyzing the various
components of this definition is helpful in understanding the theories and practices involved in negotiation as
a form of dispute settlement.
Figure 2.1 (Credit: rawpixel/ pixabay/ Attribution 2.0 Generic (CC BY 2.0))
2
Disputes and Dispute Settlement