Final answer:
The first step in the settlement of a dispute should ideally be mediation, where a neutral third party helps the parties reach a mutually acceptable solution.
Step-by-step explanation:
The first step in the settlement of a dispute should ideally be mediation. Mediation is a process in which a neutral third party helps the disputing parties reach a mutually acceptable solution. It allows the parties to have control over the outcome and helps them communicate effectively to find a resolution.