When you can avoid disputes what is the best approach? Some individuals view mediation as a waste of time, especially if it starts after the parties have already exhausted all internal methods. Mediations are not binding so there is no finality to the process. The parties can continue to disagree. Most arbitration clauses do not call for the results to be binding upon the parties. Arbitration can be done before a panel of arbitrators from the industry. There are rules. The two can mitigate help mitigate any power imbalance. Unless its binding arbitration also doesn’t settle the dispute.
I’ve never been a fan of mediation or arbitration as a way of resolving disputes. The reason is I believe that it’s too easy for the parties to pull the trigger to start an arbitration or mediation. My preferred method is to have required escalation of a dispute to management levels within both companies as the first means to resolve the dispute. If the parties then fail to agree I want them to look to only litigation.