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    Differences and Similarities Between Negotiation and Arbitration

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    Differences and Similarities Between Negotiation and Arbitration

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    shahrain
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    11 views13 pages

    Differences and Similarities Between Negotiation and Arbitration

    Uploaded by

    shahrain

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    © All Rights Reserved
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    Negotiation

    vs
    Arbitration :
    Prepared By: Yousef Alwattar
    Student ID No.: U22102173
    Introduction

    • Negotiation and arbitration are two commonly used methods for


    resolving disputes. Although they share some similarities, they also have
    distinct differences that set them apart. In this Presentation , I will
    explore the differences and similarities between negotiation and
    arbitration.
    Definition

    Definition of Negotiation Definition of Arbitration


    • Negotiation is a process of • Arbitration is a legal process where a
    communication between two or more neutral third party is appointed to
    hear both sides of a dispute and make
    parties who have different interests, a decision that is legally binding on
    goals or objectives. It involves the both parties.
    exchange of information, ideas, and • Arbitration has been used for a long
    proposals with the aim of reaching an time by states as a method of
    agreement or resolving a conflict. international dispute settlement.
    The Similarities Between Negotiation
    Arbitration
    Negotiation and arbitration, despite their differences, share some similarities in their approaches
    to dispute resolution. Here are some of the key similarities between negotiation and arbitration:
    1. Both are dispute resolution methods: Both negotiation and arbitration are methods for resolving
    disputes between parties.
    2. Confidentiality: Both negotiation and arbitration are confidential processes that do not involve
    public disclosure of the proceedings.
    3. Cost-effective: Compared to going to court, both negotiation and arbitration can be more cost-
    effective methods for resolving disputes.
    The Similarities Between Negotiation
    Arbitration
    1. Voluntary: Negotiation is a voluntary process where both parties have the
    option to come to the table and try to reach an agreement. Similarly, parties in
    arbitration can agree to arbitrate their dispute rather than go to court.
    2. Flexible process: Both negotiation and arbitration offer more flexibility in the
    process compared to litigation in court. The parties involved can choose the
    timing, location, and procedure for resolving the dispute.
    3. Avoidance of a trial: Both negotiation and arbitration offer parties an
    alternative to the time, expense, and uncertainty of a trial.
    The Similarities Between Negotiation
    Arbitration
    1. Interest-based: Both negotiation and arbitration focus on identifying the
    underlying interests of the parties involved in the dispute and finding a
    mutually acceptable solution.
    2. Avoidance of public exposure: Both negotiation and arbitration can avoid the
    public exposure of the dispute that can occur in a court proceeding.
    The differences between
    Negotiation and Arbitration
    1- Overview of Negotiation and Arbitration

    1. Negotiation is a voluntary process where the parties involved


    retain control over the outcome.
    2. Arbitration, on the other hand, is often mandatory and
    involves relinquishing control over the outcome to a third-
    party decision maker.
    2- Process
    Negotiation Arbitration
    1. The negotiation process usually involves the 1- The arbitration process usually involves the following
    following steps: steps:
    • Preparation • Filing of the arbitration demand
    • Opening statements • Appointment of an arbitrator or a panel of arbitrators
    • Bargaining • Preliminary conference
    • Closing and agreement • Discovery

    • The parties involved in the negotiation process have • Hearing


    the flexibility to choose the negotiation strategy and • Arbitration award
    the level of formality.
    • The parties involved in the arbitration process have
    limited control over the process and the decision-
    making.
    3- Decision-Making and Outcome
    Decision-Making in Negotiation Decision-Making in Arbitration

    1. In negotiation, the parties involved retain control 1. In arbitration, the decision-making process is
    over the outcome. relinquished to a neutral third party.
    2. The decision-making process is based on the 2. The arbitrator's decision is legally binding on
    parties' willingness to compromise and their both parties, and there is limited recourse
    ability to come to an agreement. for appeal.
    4- Outcome of Negotiation and Arbitration

    • The outcome of • The outcome of


    negotiation is usually a arbitration is a legally
    mutually acceptable binding decision made by
    agreement or solution. the arbitrator.
    5- Pros and Cons

    Pros and Cons of Negotiation Pros and Cons of Arbitration


    • Pros: The parties retain control over the • Pros: Final and legally binding decision, faster
    outcome, flexible process, and can maintain a and more efficient process, and parties can
    positive relationship. choose an arbitrator with relevant expertise.
    • Cons: May not be effective in resolving • Cons: Limited recourse for appeal, costly, and
    complex disputes, may lead to an impasse, the decision may not be satisfactory for both
    and one party may have more bargaining parties.
    power.
    Conclusion

    • Summary of Differences and Similarities between Negotiation and Arbitration


    • Negotiation and arbitration are two commonly used methods for resolving disputes.
    • Negotiation is a voluntary process where the parties involved retain control over the outcome,
    while arbitration involves relinquishing control to a third-party decision maker.

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