What is Alternative Dispute Resolution (ADR)?

Resolving Disputes Outside Courts

In many cases of business disputes, outcomes can be decided under the Alternative Dispute Resolution (ADR) which refers to processes and techniques of resolving disputes that fall outside of the judicial process. Often these ADRs are conducted with mediators or arbitrators in the hopes of reaching a resolution without having to involve the courts time. This most often used in civil cases such as divorces, small liability claims, and family matters. There are generally four categories of ADR.

1. Mediation
2. Arbitration
3. negotiation
4. collaborative

All ADR procedures, except negotiation, have the presence of a neutral person acting as a facilitator or decision maker. These procedures can eliminate tremendous cost of litigation and has become the favored means of settling employment disputes but this has some controversy attached to its use. Often employees sign contracts to have disputes settled in arbitration which as been criticized for replacing the justice system in some cases such as sexual harassment and discrimination.

References

Cheeseman, H. (2006) Business Law: Legal Environment, Online Commerce, Business Ethics, And International Law Retrieved from University Phoenix Library

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