AFM231 Chapter Notes - Chapter 4: Alternative Dispute Resolution, Arbitration Clause, Counterclaim

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM231
• Professor: Sally Gunz

Document Summary

Businesses should aim to manage disputes with express goals of. Sometimes, may be cheaper to simply write off amount or try to reach compromise with other party. May also want to consider the costs faced by the business, and potential publicity concerns from sueing (ex. an environmental activist) This may not be always possible and may result in litigation, especially if cost is. With disputes, businesses may need to revise their risk management plan to ensure further preventive (ex. further precautions) or reactive (ex. revising insurance coverage) measures. Ex. if insurance company unwilling to pay, they may want to take procedures with checking credit history of insurance company, especially if large claim. Alternative dispute resolution range of options for resolving disputes as an alternative to litigation. Adr practitioners (ex. mediators, arbitrators) do not have to be certified. Negotiation process of deliberation and discussion intended to each mutually acceptable resolution to dispute.