What is a Business-Consumer Dispute?

Business-consumer disputes arise when a business makes promises about a product or service that are not kept. If direct contact between the business and consumer does not resolve the problem, mediation may help. In mediation, a neutral third party (mediator) facilitates communication between the business and the consumer.

The mediator can suggest ways to resolve the conflict. In business-consumer mediation, there is a high success rate so, your dispute is very likely to settle with a mediator involved.

Examples of Business-Consumer Disputes

Business-consumer disputes can happen in most means of business. Example: A painter was hired and paid before the service was executed. The painter accepted payment and never performed the work. Another example: A consumer bought a heart monitor and the machine kept giving the wrong readings, making it dangerous for the consumer to rely on. These disputes could be little or big problems for companies if they aren’t dealt with early. Mediation will allow disputes to sort out quickly and with very little cost.

Benefits of Mediation

Mediation is a cost-effective way to resolve disputes. Taking a case to court is expensive -- there are court costs legal fees and attorney’s fees for both sides. Current technology permits mediation to go on in the comfort of your own home as well.

Another benefit of mediation is its speed. Mediation could take less than a day depending on how eager both sides are to settle. Most causes settle within a week once mediation has begun. Litigation can take several months to several years. The litigation process has a lot more variable factors that could delay the process. Mediation can settle the dispute relatively quickly.

Mediation could take less than a day depending on how eager both sides are to settle.

Mediators are adept at helping the parties find solutions that will satisfy both sides. The mediator is impartial and will listen to the wants of each side. When there is a clear understanding of the needs and wants of both sides, the mediator will try to propose a settlement to which everyone can agree. The parties are then free to adjust that plan until they are satisfied. Mediation is non-binding, so this allows the parties to discuss the mediator’s starting plan without commitment. The parties are not forced to accept a plan until they agree to everything in it.

Mediation encourages disputes to end in a respectful manner. If the dispute is between a business and consumer that usually work well together, the relationship may continue afterwards. This is important for both sides because they can put the dispute behind them and continue to benefit from each other in the future. In contrast, everything that happens in the court room can make it hard for most business-consumer relationships to remain intact after litigation.