Chapter 3

Question 1

Types of ADR

Answer 1

Negotiation
Mediation 
Arbitration 
Conciliation 
Early neutral evaluation

Question 2

Explain negotiation and the benefits/downside

Answer 2

Parties or their lawyers discuss possible solutions to the problem may occur either face-to-face or by correspondence.

Advantages include it is confidential you can remain having a relationship and you can avoid taking it proceedings

Disadvantages include the cost of representation may be high and demands of either party may be on realistic

Question 3

Explain mediation and the advantages and disadvantages

Answer 3

An independent mediator will evaluate both sides of the party and come to a conclusion which is binding

Advantages include both parties reaching an agreement the parties can walk away at any time it is quicker and cheaper the litigation

Disadvantages include mediator may be costly resolution is not guaranteed and it’s not suitable if party requires an injunction

Question 4

Explain arbitration and the advantages and disadvantages

Answer 4

Arbitration is a substitute for litigation and arbitration clause requires the parties to go through arbitration rather than court proceedings. And independent arbitrator likely to be an expert will look through the problems and their outcome is binding.

Judicial arbitration - final and binding decision involving expert determination or arbitration panel hearings.

Contractual arbitration is where parties are contractually bound to use a particular arbitration process in the event of a dispute

Advantages include quicker than court cheaper than court private and confidential

Disadvantages arbitration panel or expert can be costly process is time consuming the decision is binding with very limited rights of appeal

Question 5

Explain conciliation and the advantages and disadvantages

Answer 5

Conciliation is a similar process to mediation and negotiation with similar advantages and disadvantages the main difference is that the neutral conciliator place more of an active role in resolving the dispute rather than simply facilitating discussion

Question 6

Explain early neutral evaluation

Answer 6

Early neutral evaluation is a form of ADR in which parties refer the dispute with third-party to make a preliminary assessment of the merits of the case the aim is to determine the likely outcome of the dispute if it proceeds to trial

Advantages of the process is quick and confidential and assist the parties in reaching a settlement

A disadvantage is The outcome may not be binding