ADR: Alternative Dispute Resolution

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Introduction ADR stands for alternative dispute resolution, and it includes many different methods of settling disputes between parties. Using alternative dispute resolution to settle disputes gives the parties involve many benefits over litigation. Litigation can be understood as the process of resolving dispute between parties by filing or responding to compliant via the public court of law. With it disadvantages in some cases, litigation has its own advantages over ADR in some cases. Another means that can be applied in disputes resolution is criminal prosecution. This is the act of holding a trial against someone who is accused of committing a crime. Using any of the mentioned methods to settle a dispute will directly depends on the nature…show more content…
Businesses are often concern with time and money, and there prefer following procedures or methods that can save them time and money. As noticed from the scenario, a dispute like this will be best suited to follow alternative dispute resolution (ADR) to resolve the issue between the two companies.
As learned from Lau, T. & Johnson, L. (2011), “alternative dispute resolution (ADR) is a body of dispute-resolution methods outside of the litigation process”. Alternative dispute resolution is mostly of the time faster, less expensive and can protect the privacy of the parties involve than litigation. These factors give ADR the advantage as the prefer choice in resolving the dispute in this scenario. As we understood, the dispute in this scenario is between two businesses, and chances are that the two businesses will certainly want to continue cooperating, giving another important reason to apply alternative dispute resolution in settling the
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Understanding the nature of the dispute, the stress involve in resolving dispute, the cost of involve, and the impact certainly act as a leeway when choosing a method to resolve a dispute. Crimes can be classified as civil or criminal, and both can be resolved following either alternative dispute resolution (ADR), litigation, or criminal prosecution. Although all three methods cannot go with every kind of crime, the nature and magnitude of the crime will easily determine which method to use.
The three scenarios have been carefully studied and an appropriate method of dispute resolution had been allocated to each situation. The first situation involved workplace ethic and fraud, therefore criminal prosecution is best suited to handle the case. The second scenario involved business to customer, making it difficult for both parties to have equal bargaining power, therefore allocating litigation to settle the dispute is the best choice. Scenario three is a dispute between two businesses. These two companies may always want to continue their business cooperation, therefore applying alternative dispute resolution (ADR) will be the best in resolving the dispute as both companies can come out
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