DS Journal of Multidisciplinary (DSM)

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Volume 2 | Issue 1 | Year 2025 | Article Id: DSM-V2I1P103 DOI: https://doi.org/10.59232/DSM-V2I1P103

The Role of Arbitration and Mediation In Business Disputes

Baylar Suleymanli

Received	Revised	Accepted	Published
08 Jan 2025	10 Feb 2025	17 Mar 2025	31 Mar 2025

Citation

Baylar Suleymanli. “The Role of Arbitration and Mediation In Business Disputes.” DS Journal of Multidisciplinary, vol. 2, no. 1, pp. 16-27, 2025.

Abstract

Arbitration and mediation are very important in solving business disputes since they consume help and offer alternatives to traditional litigation in the process. Both of them are forms of Alternative Dispute Resolution (ADR), an alternative process in which the litigation is less rigid, less expensive, and more confidential. The two have different but equally important functions in business disputes as they meet various needs and want to resolve issues arising between the parties involved. This article aims to give primary knowledge about arbitration and mediation in business disputes and explore the functions and roles of arbitration and mediation in business dispute solving. The two main forms of Alternative Dispute Resolution (ADR) arbitration and mediation, are efficient, less expensive, and discreet alternatives to the litigation process. These methods have proved to be versatile as they relate to the evolution of these methods from the early days of commerce in trade to the present-day practices in international commerce. This paper discusses arbitration as a binding and versatile procedure with strong worldwide recognition, especially for difficult and transnational disputes. It also discusses mediation as a consensus-oriented, relationship-sustaining, and problem-solving approach, thus suitable for congenial dispute-solving. The article compares the two and highlights how they work in conjunction with each other in multi-tiered dispute resolution systems to promote fairness without necessarily hindering business activities. This comprehensive overview also focuses on the role of arbitration and mediation in defining the contemporary approaches to business dispute resolution.

Keywords

Arbitration, Business disputes, Mediation, Dispute resolution, International commerce.

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The Role of Arbitration and Mediation In Business Disputes