Question

Define Alternate dispute resolution procedure and explain how having such a procedure can be valuable to a company

Answer 1

Alternative Dispute Resolution is a method to resolve disputes between two parties outside court if a conflict should arise between them. Usually, this is done between employees and corporations to avoid court to resolve disputes. The reasons are time, money, the security of information, and simplicity of the procedure. The type of disputes may be job-related, divorce cases, and injury that might be personal.

The distinctive types of Alternative Dispute Resolution are:

Mediation:

These are third party dispute resolutions where mediation is resolved by a mediator who acts as a communicator to the parties involved, to solve the conflict. The mediation case is not bound by law.

Arbitration:

This type of conflict resolution is resolved by an arbitrator who is fair and considerate to both parties but usually appointed by one of the parties. Arbitration is a common method to resolve disputes between corporations and employees. The contract between the parties regulates the arbitration procedure and the Federal Arbitration Act governs them.

Negotiation:

In this method, the conflict is resolved by having a reasonable dialogue of bargaining terms between the two parties and reaching a final agreement. This method is the easiest way to solve a conflict between two parties

The benefits or value of Alternative Dispute Resolution (ADR) to a company or firm

• is an inexpensive way to resolve a dispute.
• It saves a lot of time
• it creates various ways to resolve the disputes using an ADR.
• The parties receive fair consideration by the third-party who is solving the case.
• The information that is confidential to the corporation is protected when resolved using an Alternative Dispute Resolution.