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Mediation as an alternative dispute resolution mechanism is not only effective because parties in dispute are playing an active role in settling their disputes with the the presence of third party in facilitating them to end by themselves.It therefore is not only effective but also cost and time saving for the parties and enable to reduce case backlogs of courts.It further enable them to keep up their existing relationship and avoids their hostility. Due to these and other advantages, people particularly the business persons in Ethiopia are searching for commercial mediation like people in other business world.