ADR

Question 0

What is Negotiation?

Answer 0

Where both parties try to agree a compromise

Question 1

What does ADR stand for?

Answer 1

Alternative Dispute Resolution

Question 2

What are the benefits of Negotiation?

Answer 2

It is cheap, informal, private and you can keep your business relationship in tact

Question 3

What is Mediation?

Answer 3

Where a third party is used as a ‘go between’ and keeps communication going

Mediators do not suggest a solution

Question 4

Mediators have to be a lawyer for how long before becoming a mediator?

Answer 4

7 years

Question 5

What are the Advantages of Mediation?

Answer 5

1. ) The decision is not a legal one, more likely to be based on common sense than a compromise
2. ) Makes it easier for companies to continue business together
3. ) Avoids conflict in the court room, no winner/loser, everyone wins

Question 6

What are the disadvantages of Mediation?

Answer 6

1. ) No guarantee the matter will be resolved, and it’s necessary to go to court after the failed mediation
2. ) A successful mediation requires a skilled mediator. If these skills are not present, the mediation can become a bullying exercise where the weaker party maybe forced into a settlement
3. ) The amounts paid in mediation are often less in other settlements and less than awarded in court

Question 7

What is Conciliation?

Answer 7

Where the third party suggests a compromise

Question 8

What is ACAS? (Conciliation)

Answer 8

The Advisory, Conciliation and Arbitration Service. It aims to promote industrial relations within industrial disputes.

Question 9

What are the advantages of conciliation?

Answer 9

1. ) Better than mediation as a compromise is suggested
2. ) Legal representation is not needed
3. ) Less formal and less intimidating as court

Question 10

What are the disadvantages of conciliation?

Answer 10

1.) Conciliation is rarely used as ACAS is more practical

Question 11

What is Arbitration?

Answer 11

Where parties agree to have a third person make a ‘binding decision’

Question 12

What did the Arbitration Act 1996 do?

Answer 12

1. ) Aim to obtain fair resolution of disputes without expense or delay
2. ) Parties agree how the dispute will be resolved
3. ) If both parties agree arbitration can be abandoned in favour of court action

Question 13

What are the advantages of arbitration?

Answer 13

1. ) Experts will hear specialist areas of law
2. ) It’s cheaper and quicker. This means no trip to court and waiting time and no money for solicitor or barrister
3. ) Both parties control the time, place and the arbitrator themselves

Question 14

What are the disadvantages of mediation?

Answer 14

1. ) There is a lack of appeal structure, this means it is difficult to appeal a ‘legally binding contract’
2. ) There’s an imbalance of power. This means that one party can dominate the other into making certain decisions
3. ) It forces parties to co-operate. If one party doesn’t it becomes impossible to come up with a solution

Question 15

What two ways can arbitration arise?

Answer 15

1.) By contract before a dispute arises
Many commercial agreements contain a ‘Scott v Avery clause’. This is where disputes must go to arbitration
2.) After a dispute arises
This is where parties may agree to arbitration at any time

Question 16

How do you chose an arbitrator?

Answer 16

They maybe found through a trade association. Parties usually agree on one, but you can have more. They have to be a neural third party and an expert in the field.

a. ) They is not connected to either party
b. ) They have the necessary expertise
c. ) They have experience of the area in dispute