Chapter 4

 What are some of the advantages of taking a dispute to court?  What are some of the disadvantages?

 Negotiation—informal process in which the disputants discuss and try to work out their problem  Requires (1) sincere interest to resolve; (2) clear identification of issue and (3) ability to view from other’s perspective  Examples?

 Mediation—a third party helps the disputing parties talk out their problem and helps them find solutions  Mediator cannot impose a settlement on the parties  Advantages—helps take emotion out of the process; independent ideas are received more favorably by parties  Disadvantages—may not work; cost

 Arbitration—a binding process where one or more selected persons hear evidence/arguments and make a decision  Often provided for in contracts  Advantages—speed, expense (compared to court); more reasoned decision  Disadvantages—no right of appeal

 Pair up and work on problem 4.1  Write up answers and turn in for class participation  Make sure both names are on the paper!