Sally and Tom disagree over the amount of money due under their contract. To avoid involving any third party in a resolution of the dispute, Sally and Tom might prefer to use the alternative dispute resolution method of a. Arbitration; b. litigation. c. mediation. d. negotiation

d. negotiation

Explanation:

Negotiation is process by which parties in a dispute settle their differences. It aims for achievement of agreement and compromise between the parties, and to avoid argument and dispute. The parties try to achieve the best possible outcome.

Negotiation involves 5 stages:

- Preparation

- Set ground rules

- Clarification and justification

- Bargaining and solving problems

- Implementation

Sally and Tom will try to use the negotiation method to resolve their differences without involving a third party.

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