High emotions, damaged relationships, diminished confidence – often the result of miscommunication when a car deal that was negotiated in good faith goes bad. Conflict Resolution Academy, LLC, located in Smyrna, Georgia, offers training and services in dispute resolution that help businesses avoid costly arbitration or litigation.

In today’s market, independent car dealers are met with pressure from every angle. The consumer wants “the best deal” with promises that cover replacement, repair and satisfaction from bumper to bumper. New car dealerships weigh in with large rebates, 0% interest, longer warranties and lots of give aways. The competition is tough and only the strong independent dealer will survive.

When it comes right down to what makes an independent dealership successful, the real factor in the equation is customer satisfaction. In order to keep the lines of communication open and relationships in tact, it is in the best interest of today’s professional car dealer to have a system in place to deal fairly and honestly with the customer.

A familiar and popular form of dispute resolution in the car industry is Arbitration. The arbitrator rules on the dispute and the process is more often than not, legally binding. While it offers lower costs than litigation and is held in a less formal setting, it offers little room for appeal. An alternative, offering the lowest level of intervention and a win-win solution in a dispute, is called mediation.

What is mediation and how does it work?

Mediation is a voluntary process used to empower parties to negotiate an agreement in their own best interest. This technique involves the use of a neutral, called a mediator, who serves as a point for check-in at the “reality desk” in order to help the parties identify the issues, structure negotiations and realize fair solutions. Mediation is not a legal proceeding and the mediator will not provide either legal advice or counsel. By agreeing to mediate, neither party gives up the right to arbitrate or litigate if no agreement is reached. The success of the mediation depends on all participants being committed to participate fully in the procedure. Mediators may be, but are not necessarily subject matter experts concerning the technical issues in dispute. Best of all, the cost of a mediation session is much less than any formalized process and can take place almost immediately.

Mediation is used throughout the business world as a method of resolving disputes that are often a result of poor communication. Parties can enter into contracts for products or services with different expectations and interpretations of what an agreement says. For example, when a problem arises, i.e. the car experiences a system failure that could not have been predicted, the honeymoon is over! The buyer returns to the dealership with certain expectations. If there is nothing in the dealer agreement that covers the system failure, the stage for a misunderstanding is set. As a gesture of good will, often the dealer will repair the vehicle at no cost to the customer, even if it is not his legal responsibility. Three months later, 3500 miles added to the odometer, and a payment behind, the same customer comes in with another complaint expecting the same response from the dealer. What now? Many dealers will work with the customer, offering to have the repairs done at cost (or at the least, with a discount). With the previous history of the dealer’s good faith efforts to “do the right thing,” a reasonable customer would be pleased and agree to the offer. An unreasonable customer might expect the dealer to absorb the cost again. Is there room for disagreement here?

Suppose the same customer purchased an unwarranted car, drove it for less than 90 days and had the engine go bad. The customer comes in demanding that the dealer replace the engine, give them a replacement car to drive, pay the gas, pain and suffering – on and on with an unending list of demands. When the dealer tries to offer a reasonable solution, he is met with threats of lawsuits, bad publicity and more from the customer who is “always right.” Can a dealer keep the customer happy and afford to stay in business too? The answer is yes! Most angry customers just “want to be heard” and after working with a mediator who has “reality tested” their demands, become more reasonable and willing to negotiate a realistic outcome. At this point, mediation is the lowest level of intervention, presenting an opportunity for a win-win solution.

Talk to your attorney about the value of mediation. If you think that mediation is a viable solution to problems you face in the car industry, find out how to use it. Consider adding a paragraph in your contract that has the customer agree to mediation as an alternative to arbitration or litigation in the event of a dispute. For more information on mediation services or training, contact staff members at Conflict Resolution Academy, LLC at 770-435-5009 or visit our website www.conflictresolutionacademy.com.

Conflict Resolution Academy, LLC announces the formation of the “Atlanta ADR Brown Bag Lunches” program. Beginning July 9, 2003, 11:30 – 1:00pm, and following a monthly schedule thereafter, Conflict Resolution Academy will partner with a variety of ADR Program and Service providers and guest speakers to share information and conversation on important and timely topics that impact conflict management. Many topics may satisfy continuing education requirements.

Upcoming speakers include Christina Petrig from the Georgia Office of Dispute Resolution. Conflict Resolution Academy will be developing a list of programs and presentation sites for the balance of the calendar year based on co-sponsors and speaker availability.

If your organization might be interested in co-sponsoring a presentation or if you have a topic you would like to have explored, please contact Carol Rice at Conflict Resolution Academy, LLC at 770-435-5009.

Check our calendar, for more information.

Conflict Resolution Academy, LLC is a great resource for Continuing Legal Education Credits. Our videos listed under the category “Legal and Ethical” in the Academy Store have received CLE credit for general credits, professionalism and ethics in the State of Georgia. Contact our office for information on how you can use them in your firm!

Conflict Resolution Academy, LLC is also a great resource for Continuing Education Credits through our alliance with Georgia Perimeter College. We offer training, workshops and seminars that are eligible for CE credits that are accredited through the GA Perimeter system. Our trainers can customize programs that will fit your organization needs. Call us today for more information.
 

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