In business, it's not unheard of to encounter customer complaints. Some of these complaints can be very difficult to solve, especially if you're running a small company and are responsible for every angle of the company. But there are certain methods you can use to effectively solve disagreements with your customers without getting yourself into legal trouble.
Arbitration is an ideal method to use if you have a huge disagreement with a customer. Start by finding the right arbitrator. You can find your own arbitrator you can hire one, such as a lawyer or judge, to resolve disagreements. If you're not sure how arbitration works, think of it as mediation with more authority. Arbitrators can be very neutral and impartial in their approach and are trained to avoid bias when making decisions.
To be eligible for arbitration, both parties must agree in writing to arbitration (this may be subject to change if the parties involved don't agree). The arbitrator will listen to both sides of the story and make a decision on behalf of the customer. Unlike mediation, there is no cost for arbitration. In business, it's not unheard of to encounter customer complaints. Some of these complaints can be very difficult to solve, especially if you're running a small company and are responsible for every angle of the company. But there are certain methods you can use to effectively solve disagreements with your customers without getting yourself into legal trouble.
Arbitration
Arbitration is an ideal method to use if you have a huge disagreement with a customer. Start by finding the right arbitrator. You can find your own arbitrator you can hire one, such as a lawyer or judge, to resolve disagreements. If you're not sure how arbitration works, think of it as mediation with more authority. Arbitrators can be very neutral and impartial in their approach and are trained to avoid bias when making decisions.
If you have a customer who's been abusing your service or unfairly asking for discounts (and perhaps failing to pay) or being rude in general, they might be receptive to arbitration. This may be an ideal place to start a dispute resolution process as it can take away most of the drama and stress and hopefully prevent an escalation that could lead to legal action. Remember, though, that doing so will likely mean less customer loyalty.
Retaliatory Limitation Of Liability:
Some customers feel one can never trust their business these days. It's a scary thought, especially if you don't have many customers! So, as a business owner, how can you prove you're trustworthy? The first thing to do is to put a clause in your contract stating that you will be held harmless; in other words, no matter what the circumstances are, there won't be any comeback.
The best way to do this is by putting a disclaimer in the contract that states: "The customer agrees that (insert name of the business) shall not be liable for any type of damages or losses resulting from the (insert reason)." [Top]
In some cases, this kind of clause may not work.
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