Alternative Dispute Resolution Essay

1067 WordsDec 15, 20125 Pages
Alternative Dispute Resolution Law and Ethics for Managers January 13, 2011 Alternative Dispute Resolution (ADR) can be used to refer to a variety of methods used to resolve disputes outside the formal court system (Bagley & Savage, 2010). Less expensive and timely than formal trials, an ADR can provide companies with much-needed privacy for discreet matters, help to maintain relations with strategic business partners, and may provide more flexible and creative resolutions to disputes (Clarkson, Cross, Jentz, & Miller, 2004). Negotiation, mediation, and arbitration are the most popular types of ADR (Bagley & Savage, 2010). For the benefit of business managers, this paper will review what is involved in the each ADR process, recommend steps to prepare for each type of action, look at some advantages and/or disadvantages of each, and discuss how legally binding the decided outcome of each ADR may be for the parties involved. One of the most simple and least formal types of Alternative Dispute Resolution (ADR) is negotiation. During a negotiation the disputants meet informally, with or without council, to attempt to settle their differences (Bagley & Savage, 2010). In some cases the court may require that the parties attempt to negotiate before a trail to attempt to reach a resolution and will only hear the case if cannot reach an agreement on their own accord (Clarkson, Cross, Jentz, & Miller, 2004). The disputing parties may also resolve their differences in a less confrontational manner through conciliation, where a third party conciliator schedules negotiation meetings and acts as a go-between delivering messages and offers to each party; the conciliator does not normally recommend a solution (Clarkson et al, 2004). Along with reviewing the relevant information, negotiation specialist Raphael Lapin (2007) claims there are three steps to prepare for any
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