Alternative Dispute Resolution

Question 1

What is negotiation?

Answer 1

• Requires parties having direct conversation.
• Agreement can only be formed if both parties civil.

Question 2

Advantages Of Negotiation

Answer 2

• Cheapest form ADR
• Done by parties themselves

Question 3

Disadvantages of Negotiation

Answer 3

• Only works if parties willing to co-operate
• Issue can be prolonged if repeatedly unsuccessful

Question 4

What is mediation?

Answer 4

• Neutral 3rd party helps parties come to a solution
• Doesn’t offer input//opinion unless asked

Question 5

Advantages of Mediation

Answer 5

• Cost-effective
• Faster resolutions than courts
• Flexible solutions
• Confidentiality
• Preserves relationships

Question 6

Disadvantages of Mediation

Answer 6

• Non-binding decisions
• May not work if parties not cooperative//power imbalance
• Mediator quality

Question 7

What is conciliation?

Answer 7

• Neutral 3rd party
• Plays more active role by giving opinions and suggesting grounds for compromise.

Question 8

Advantages of Conciliation

Answer 8

• Cost-effective
• Expert guidance
• Confidential
• Parties in control,,can withdraw at any point

Question 9

Disadvantages of Conciliation

Answer 9

• Skilled concilaitor needed
• May feel biased as conciliator plays more active role
• Non-binding decisions

Question 10

What is Arbitration?

Answer 10

• Parties submit claims to arbitrator (usually in writing)
• Decision is an “award”,, legally binding

Question 11

Advantages of Arbitration

Answer 11

• Binding decisions
• Private & Confidential
• Flexible
• Place and time arranged to both parties
• Choose own arbitrator

Question 12

Disadvantages of Arbitration

Answer 12

• Limited grounds for appeal
• Potential imbalances of power (eg: companies can hide disputes through arbitration)
• Can be high cost