The Pros And Cons Of Settling Out Of Court

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Discussion 4 In the business world, settling out of court is a favoured form of dispute resolution because it prevents a costly and drawn-out legal process. In the following paragraphs, I will discuss why settling out of court is a good and bad option. First, settling out of court is a good option because it prevents time-consuming, costly litigation and it preserves the business relationship between the two disputing parties. For example, a frozen food supplier may decide to settle out of court with one of their customers for a delinquent payment due to their close working relationship and the fact that the litigation process would be more expensive (Shvartsman, 2015). Moreover, court proceedings can be extremely stressful for both parties because the ruling is beyond their control. Each party must accept the judgment passed down by the judge or jury. This may result in one side losing out completely due to the other side making a more convincing legal argument in court. Thus, the settlement process can alleviate some stress due to the informal nature of the proceeding where both sides can hash out their differences to reach an agreement (Shvartsman, 2015). Second, settling out of court is a good option because …show more content…

(2011, January 12). Retrieved July 07, 2017, from http://www.ctvnews.ca/court-reluctant-to-undo-65m-facebook-settlement-1.595463 Staff, L. (2007, August 06). Alternative Dispute Resolution. Retrieved July 07, 2017, from https://www.law.cornell.edu/wex/alternative_dispute_resolution What is Alternative Dispute Resolution? (n.d.). Retrieved July 07, 2017, from http://settlement.org/ontario/legal-services/lawyers-and-other-legal-help/other-kinds-of-legal-help/what-is-alternative-dispute-resolution/ Shvartsman, S. (2015, April 09). To Settle or Not to Settle? That Is the Question. Retrieved July 07, 2017, from

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