Choose mediation if:
You want to maintain a positive business relationship with the other party.
The dispute involves communication challenges or misunderstandings.
Both parties are open to negotiating a compromise.
Which is right for your situation?
Sometimes, conflicts need an expert in the room. Some sound, neutral guidance to move forward. In situations like these, many businesses turn to BBB’s Mediation and Arbitration services.
But you might wonder, “What’s the difference?” Is one service better suited for certain disputes? And most importantly, how can either option protect your business?
The short answer: Both services resolve disputes, but they’re designed for different situations and offer unique benefits. Here’s a breakdown to help you understand how each can work for your business.
What is mediation?
Mediation is a voluntary process where a neutral third party mediator helps both sides communicate to reach a solution everyone can agree on.
Notice the emphasis on communication. Unlike arbitration, where an arbitrator makes the final call, mediation empowers both parties to reach an outcome together. It’s ideal for situations where both sides are open to finding a resolution that works for each.
Example of mediation:
Imagine you’re an electrician who has completed wiring work on a client’s home, but the client is dissatisfied and withholds payment. Rather than jumping straight into legal action, you might consider mediation.
The mediator would guide the conversation, helping clarify any misunderstandings and find a solution, perhaps an agreement where the homeowner pays a portion now, and you correct any needed adjustments. This approach avoids costly legal fees and keeps the relationship intact.
Why choose BBB Mediation?
BBB’s Mediation service offers trusted, experienced mediators familiar with the types of conflicts small businesses face. This means you’re not just getting any mediator – you’re getting one who understands your challenges.
Accredited Businesses can access this valuable service for free, which is a true advantage in resolving conflicts affordably.
What is arbitration?
Still a faster and more affordable option than going to court, arbitration involves a neutral third-party arbitrator who listens to both sides and makes a binding decision. In arbitration, there’s less flexibility – what the arbitrator decides is final and enforceable.
Example of arbitration:
Say you run an HVAC company, and a customer claims a recently installed air conditioning unit isn’t working as promised. They demand a refund. After inspecting the system, you’re confident it’s working as intended. But the customer disagrees and escalates their complaint.
In a situation like this, arbitration can offer a straightforward solution. You both present your evidence, and the arbitrator decides based on the facts, giving both parties a clear, enforceable resolution.
Why choose BBB Arbitration?
With BBB Arbitration, you benefit from skilled arbitrators who understand the complexities of many different industries. They make sure the process is fair, efficient and tailored to small businesses, saving time and legal costs.
Accredited Businesses can access this service at no extra charge – another powerful reason to consider BBB Accreditation.
How to choose between BBB Mediation and Arbitration?
The right option depends on your specific situation and the outcome you’re wanting:
Choose arbitration if:
You need a binding resolution to enforce accountability.
The dispute involves significant financial or contractual issues.
You prefer a quick, final decision without ongoing back-and-forth.
The BBB advantage
Choosing between mediation and arbitration depends on your goals, but both have major benefits. Mediation preserves valuable relationships, while arbitration provides a clear, enforceable resolution when stakes are high.
With BBB’s Mediation and Arbitration services, you’re always getting:
Cost savings that reduce the financial impact of disputes.
Experience and resources tailored to your needs
Processes that reflect BBB’s commitment to advancing trust in the marketplace
Whether you’re aiming to resolve a disagreement or prevent future conflicts, BBB offers trusted, cost-effective options that help you protect your business.
Do you have a partner to help you navigate potential disputes?
BBB Great West + Pacific
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