• Mediation of business disputes can help you avoid the courtroom.gavel image by Cora Reed from Fotolia.com
  
  The International Institute for Conflict Prevention and Resolution (CPR) offers mediation rules for business disputes. Mediation uses a neutral third party in order to resolve conflicts between two businesses. With mediation, business disputes can be resolved more quickly than civil proceedings in court can. In addition, mediation avoids the onerous costs of lawsuits.
  
  

Agreement

• CPR mediation requires two parties to agree to resolve a dispute in good faith by agreeing to a pre-dispute clause. This clause prevents businesses from resorting to litigation until mediation is complete.
  
  

Mediator Selection

• The CPR Institute of Dispute Resolution allows each business to select from a panel of neutral mediators. The two disputing parties must agree to select the same moderator, with an initial list of three individuals. If both businesses cannot agree to use the same monitor, they must rank a list of CPR candidates in order of preference. The CPR will then select a mediator to handle the dispute. In order to prevent conflicts of interests, mediators must provide full disclosure of any pre-existing business relationships that can affect impartiality.
  
  

Representation

• Each business party in the CPR moderation can only have a limited number of people representing each side, which the moderator will determine. Each business will usually be allowed to select an attorney and an executive authorized to represent the company.
  
  

Rules

• After the CPR mediator has been selected, proceedings may begin. The mediator is responsible for controlling the procedures of the conflict, and both sides must cooperate with the mediator. The mediation process is non-binding. The neutral party is responsible for trying to resolve the dispute in a manner that is agreeable to both parties. Mediators will set up times and dates for meetings by consulting with both parties. Both parties must make a good faith effort to be available for meetings, and the proceedings should be conducted in a timely manner. All information shared between the two parties will be kept in the strictest confidence by the CPR moderator.
  
  

Settlement

• If the mediation is successful, both parties will come to an understanding and a sheet listing terms will be signed by both parties. The term sheet outlines the agreement between the parties. If legal action is already pending, the case can be dismissed as a consent judgment, because both parties have eliminated their dispute.
  
  

Disagreement

• If the businesses cannot reach an agreement with the assistance of the CPR mediator, the mediator may send out a final settlement proposal to both parties that outlines the likely outcome of the dispute in a court. The CPR mediator will try to use last offer-arbitration, which offers a final compromise between the two parties. If the negotiations are still unsuccessful, the businesses will settle their dispute in court.