ADR

Question 1

Arbitration

Answer 1

Uses an individual arbitrator chosen by parties to solve a dispute about the claim. Usually business disputes such as building contracts.
- can be a requirement to arbitrate due to a Scott V Avery Clause
An example is ACAS

Question 2

Conciliation

Answer 2

Involves a conciliator who is a neutral third party facilitates decisions to reach compromise
- this goes beyond mediation as it has the power to suggest grounds for compromise
- often used in industrial disputes
An example is ACAS

Question 3

Mediation

Answer 3

Participants are not forced to attend, they can leave at any time.
- mediators do not offer opinion on a settlement or compromise
- parties have control over the process and can withdraw at any time
An example is CEDR

Question 4

Negotiation

Answer 4

• most formal
  -easiest and cheapest way to solve disputes
• no third party
• can be solved with/without a solicitor
  -most informal type of ADR
• mostly used in neighbor disputes

Question 5

What are the advantages of ADR?

Answer 5

1) cost - cheaper than court
2) speed - resolved much quicker than court
3) privacy - bad publicity can be avoided and businesses can continue to dead with each other after resolving an issue
4) parties are in control of the process

Question 6

What are the disadvantages of ADR?

Answer 6

1) costs can be high - legally
2) no routes of appeal
3) decisions are not legally binding
4) may be a power imbalance