2L - Dispute Resolution

Question 1

The dispute resolution process

Answer 1

Is a series of steps that disputing parties follow in order to resolve a disagreement and reach a resolution
1. Attemps to resolve the dispute internally through discussions
2. The business involves an independent third party (FWC)
3. Third party facilitates mediation
4. If step 3 fails, it proceeds to arbitration

Question 2

Mediation

Answer 2

Involves an impartial third party facilitating discussions between disputing parties to help each side of the conflict reach a resolution themselves

Adv:
- The two disputing parties come to their own agreement, making it more likely that both parties will be happy with the outcome
- Relationships can be maintained as the disputing parties work together on a solution
- The relatively low cost of mediation makes it one of the most cost-effective dispute resolution options

Neg:
- There is no guarantee that a resolution will be achieved, which means the dispute can be ongoing
- Decisions are not legally binding. Therefore, if an agreement is made, the party does not need to honour the resolution if they change their mind
- Can be challenging if one of the parties is withholding information
- One party can be more savvy, or have more power, making a resolution unfair without intervention to redress the power imbalance

Question 3

Arbitration

Answer 3

Involves an independent third party hearing agruments from both parties and making a legally binding decision to resolve the conflict

Adv:
- There is a guaranteed outcome to the dispute
- The outcome is legally binding, ensuring that neither party can change their mind
- The process of coming to an outcome is often quicker than mediation, putting an end to the dispute relatively quickly

Neg:
- often more expensive than mediation
- The decision is taken away from the disputing parties, resulting in one or more parties being unhappy with the outcome
- Relationships may be harmed during the process