Some companies and industries offer programs to address disagreements between buyers
and sellers. The auto industry has several of these programs. The Financial Industry Regulatory Authority offers a program designed to resolve
investment-related disputes. Some small claims courts also offer a dispute
resolution program as an alternative to a trial.
Mediation, arbitration, and conciliation are three common types of dispute
resolution. During mediation, both sides involved in the dispute meet with a neutral
third party and create their own agreement jointly. In arbitration, the third party
decides how to settle the problem. Request a copy of the rules of any program before
making a decision to participate. You will want to know beforehand if the decision is
binding. Some programs do not require both parties to accept the decision. Also ask
if participation in the program places any restrictions on your ability to take other
legal action.
The American Bar Association publishes a directory of state and local dispute
resolution programs.
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