Alternative Dispute Resolution

Question 1

What are the four types of ADR (alternative dispute resolution)

Answer 1

Negotiation: Involved parties discuss issues and compromise of make a decision about how the issues can be resolved.

Mediation: Involved parties discuss disputes with a neutral third party (mediator), won’t disclose own opinion but helps parties to reach their own agreement.

Conciliation: a conciliator helps to resolve disputes but plays a more active role that a mediator eg suggest grounds for a possible compromise

Arbitration: the process where parties agree to have their dispute heard by a private arbitrator who will make a binding decision

Question 2

Advantages and disadvantages of negotiation

Answer 2

Adv: very informal, no cost, private
Dis: parties involved may not be able to make a decision or compromise

Question 3

Advantages and disadvantages of mediation

Answer 3

Adv: much cheaper than courts, reach their own agreement so likely to last longer than settlements that are forced on them
Dis: may not lead to settlement, not a binding process

Question 4

Advantages and disadvantages of conciliation

Answer 4

Adv: much cheaper than other forms of legal action, entirely private, good success rate

Dis: may not lead to settlement so parties may have to litigate anyway

Question 5

Advantages and disadvantages of arbitration

Answer 5

Adv: cheaper than courts, binding decisions can be enforced by courts, choose own arbitrator, quicker than court proceedings

Dis: no state funding, professional arbitrators fees can be as high as courts, using professional arbitrators or lawyers may cause delays similar to those in the court system