In: Economics
What is alternative dispute resolution (ADR)? Please discuss some of the different types of ADRs
This Alternative Dispute Resolution is a technique of out of court settlement meant for people who intend to settle down their disputes without initiating litigation or without letting themselves go through the tedious and time-consuming trial process, saving money at the same time.
Some different types of ADR are:
a) Negotiation: Here both the aggrieved parties negotiate to reach those terms which are mutually acceptable to both of them. This is one of the least practised forms of ADR.
b) Mediation: This includes a third person who is trained to help the parties to reach mutually agreeable terms. This must be noted that the suggestion of the mediator does not bind upon any parties, they can either agree with the solution or can freely disagree. The task of mediator here is not to declare any order but to let both the parties communicate with one other effectively
c) Arbitration: In arbitration, a person independent from both the aggrieved party is appointed, whereby he hears the arguments presented by each party and then declares his order. If the party agrees to the suggestion of the arbitrator then they do away with the trial thought and if in case they don't agree they have the right to go ahead with the trial request.