Alternative Dispute Resolution Methods for Business Disputes

This report examines the legal framework and recommends appropriate legal solutions for resolving business disputes, specifically focusing on Pegasus's operational challenges. The report emphasizes the advantages of Alternative Dispute Resolution (ADR) methods, such as mediation and arbitration, over traditional litigation. It highlights how ADR schemes can be more cost-effective, time-efficient, and less complicated, particularly in commercial settings. The report details the processes and benefits of both mediation and arbitration, including confidentiality, higher control, and mutuality. It also provides examples of how these methods can be applied to resolve partnership disputes, employee issues, and other commercial conflicts, making it highly relevant for Pegasus, a delivery services company. The report concludes by referencing key academic sources that support the findings.

The Legal Framework and
Legal Solutions

TABLE OF CONTENTS
L04 Recommend appropriate legal solutions to resolve areas of dispute.......................................3
REFERENCES................................................................................................................................5

L04 Recommend appropriate legal solutions to resolve areas of dispute
Pegasus has been communicated that in case of any legal disputes that happen in the
business operations in their partnership firm and might lead to litigations in the court system will
be highly expensive, complicated and time consuming. In order to use alternative methods of
settling commercial disputes, Pegasus can adopt ADR as a means of resolution. In the UK,
Alternative dispute resolution is highly encouraged in the industry.
ADR schemes are processes which will enable Pegasus for resolving commercial
disputes without having to go to court. ADR schemes tend to act as the middleman between
Pegasus and the disputed party after an initial complaint which could not be resolved due to any
reasons (Delgado, 2017). Another name for these is ombudsman services that can be used by
Pegasus as an alternative method and are less complicated and expensive. The two most general
and effective ADR methods are mediation and arbitration. The other ADR methods are
conciliation, negotiation, collaborative law, dispute resolution, conflict resolution, party
supported mediation and restorative justice.
In case of arbitration, where there is an independent party which conducts a formal
process of all the details regarding the dispute that has occurred with Pegasus and other company
or party like employees, suppliers, corporations, and customers etc. in this case the decision
taken by the arbitrator will be legally binding on all the parties (Inshakova and et.al., 2020). The
major advantages of arbitration are that in contrast to litigation, arbitration allows the disputed
parties to choose the tribunal themselves and is faster and cheaper than litigation. Another thing
to be noted in arbitration is that the overall cost is less than litigation. Another advantage that it
has over litigation is that it does not award legal cost against the losing party as opposed to legal
system where courts let winner be entitled to recover approximate costs in the litigation process
from the losing party (Black and et.al., 2020).
Another form of alternative dispute resolution is mediation, where an independent third-
party individual or institute will help Pegasus and the part with which it is in dispute with, to
reach to a mutually acceptable decision or result. For example, if there is a partnership dispute
that occurs between Jay and Alex where one wanted to dissolve the partnership. Through
mediation, both sides will get a chance to explain their requirements and will come to terms
through the process with a settlement (Faulkes, 2018). The mediator will initiate a formal
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communication structure and help in reaching at a voluntary agreement, although no solution
will be imposed. The major benefits of mediation will be the cost which is less as compared to an
attorney and process is less time taking and confusing as compared to standard legal channels.
The confidentiality is strictly confidentiality, higher control, compliance and mutuality will be
observed. It will be highly relevant to Pegasus as they operate in delivery services where there
might be a lot of employees and workplace issues, partnership issues and other commercial
issues (Hodges, 2019).
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REFERENCES
Books and Journals
Black, D.U., and et.al., 2020. International Arbitration Report.
Delgado, R., 2017. Alternative dispute resolution: A critical reconsideration. SMUL Rev., 70,
p.595.
Faulkes, Z., 2018. Resolving authorship disputes by mediation and arbitration. Research
Integrity and Peer Review, 3(1), pp.1-7.
Hodges, C., 2019. Delivering dispute resolution: a holistic review of models in England and
Wales.
Inshakova, A.O., and et.al., 2020. INTERNATIONAL COMMERCIAL
ARBITRATION. Alternative Methods of Judging Economic Conflicts in the National
Positive and Soft Law, p.223.
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