Why is negotiation a more efficient and effective way to reach a solution than either a lawsuit or arbitration?

Question

What will be an ideal response?

Answer 1

Negotiation is a more efficient and effective way to reach a solution than either a lawsuit or arbitration. In a lawsuit, the adversarial nature of the environment pits one set of interests against the other. The goal is a "win-lose" situation, where one of the parties is clearly victorious over the other. In arbitration, both parties agree to a settlement reached by a third party, which may or may not reflect the interests of the conflicting parties. Arbitration occurs outside of the courtroom; however, the parties involved are bound by the verdict-one that may or may not bring satisfaction. Verdicts resulting from arbitration often resemble "win-lose" or even "lose-lose" resolutions, where either one party is victorious or both parties must compromise so severely that the final agreement is perceived as a loss by both parties. In contrast, negotiation, when handled properly, typically results in identifying all the primary interests of both parties and generating an agreement that addresses key issues of both parties. This can result in a "win-win" solution where both parties feel their primary interests have been listened to, if not addressed.