Mediation
Q&A
Services for Businesses
Can a mediation clause be used as a default in single or continuous transactions?
Yes. Mediation is a method of out-of-court dispute resolution which can be used either in application of a previous agreement of the parties to resolve any disputes by mediation or in application of Law 4640/2019 for disputes brought before courts.
It can therefore be used as an out-of-court settlement clause in written agreements or notarial acts for any subsequent disputes arising between the parties.
The arbitration clause ensures more sustainable trading conditions, and by extension stronger businesses, be it goods or services.
It is therefore also common in companies that carry out cross-Community and/or international transactions as a preferred way of managing their transactions, as there is a recognized international framework for the validity and application of a relevant clause in commercial transactions both between individuals and between legal entities.
In which cases can the mediation clause also be applied as a unilateral declaration?
There is never unilateral submission to mediation. However, often in consumer law the seller formulates the conditions of its application in advance in the sales contract.
Therefore, from the moment the customer accepts the contract, then the content takes effect and the mediation clause if included by the seller.
Can every trading entrepreneur formulate such contract terms even for a single transaction?
No. There are many parameters that must be considered on a case-by-case basis to ascertain which is the first applicable rule. in a contract such as and who has the authority to dispose of objects of transaction [either goods or services]. In most cases, however, it is a compatible clause for contracts governed by consumer and commercial law.
Businesses that meet the conditions and choose to activate a relevant clause in their benefits, what interest do they have?
The arbitration clause implies a faster flow of transactions for small and large businesses as it forms an out-of-court framework for resolving disputes with customers while confidentially dealing with the problems that arise.
In many cases, such as consumer disputes (online commerce), in disputes arising from the provision of services and through third parties (travel websites, bookings, etc.), the contracting party who was not satisfied for any reason by the seller is guided, at his expense second or intermediaries in a series of negotiation and problem-solving actions.
Thus the seller secures his reputation with a minimal outlay compared to the court system and in a minimal amount of time.
Still many times the seller improves the provision of the services/goods itself since in the mediation he immediately learns of the problem that has arisen. In most cases, mediation begins within the next day of the request of the interested party without any legal action being taken until the process is completed. Accordingly, the legal claim that a disgruntled buyer who is not bound by an arbitration clause with the seller may present comes to the knowledge of the latter much later and after it has already acquired a dimension with possible consequences for his reputation.
A business that has a relevant service infrastructure to mediate with disgruntled customers can be dealt with quickly to avoid related problems and protect its reputation.
In practice, he gains the trust of the traders and secures their preference every time a mediation takes place.
Even more, however, it also protects its financial entity, since multi-year, usually costly trials are avoided that may also result in a financial penalty for businesses that collide with consumers.
Any examples of successful day-to-day implementation of the institution in business service infrastructures?
Most businesses [international trade and online] providing, services, goods, travel/bookings, etc. maintain an arbitration clause that the contracting party accepts in order to complete a transaction with them. That is, a clause which states that any dispute arising from the transaction will be resolved by the corresponding mediation service provided by the seller.
This clause does not prevent the party from taking legal action if they do not reach an agreement through mediation. but it is a prerequisite to be legally bound to have first accepted this out-of-court resolution service provided by the company.
Usually on international service delivery platforms, 37% of transactions are subject to mediation every day and only 2% of these disputes are not resolved definitively.
Disputes that are not resolved out of court involve more favorable conditions for the exercise of class actions. by consumers.
