Business Law: Analysis of Alternative Dispute Resolution Methods

This essay provides an overview of alternative dispute resolution (ADR) methods in business law, focusing on arbitration, mediation, and negotiation. It discusses the features, advantages, and disadvantages of each method, highlighting their role in resolving disputes outside of traditional court proceedings. The essay emphasizes the cost-effectiveness and speed of ADR compared to litigation. Arbitration is presented as a method involving a neutral arbitrator who makes a binding decision based on evidence and legal provisions. Mediation is described as a dynamic process facilitated by a third-party mediator to help disputing parties reach a mutual agreement. Negotiation is defined as a dialogue between parties to achieve a beneficial outcome, though not always favorable to all. The essay concludes by ranking arbitration as the most effective ADR method due to its evidence-based and legally sound decisions, followed by mediation and negotiation.

Running head: BUSINESS LAW
BUSINESS LAW
Name of the Student
Name of the University
Author Note

1BUSINESS LAW
Introduction
Alternative dispute resolution is a process to addresses conflict between parties out of
court. There are various processes through which ADR can be carried out. These processes come
with their own features, advantages and disadvantages. The paper discusses the various
alternatives which are available to the parties in a dispute when it comes to solution. The three
primary kind of ADR which are available to the parties to the dispute are Arbitration, Mediation
and Negotiation. ADR is opted by the parties in order to come to a quick and feasible decision as
it is cost effective and quick to obtain as compared to traditional litigation methods (Meyerson
2015).
Arbitration
This is a form of dispute resolution where disputes are resolved outside courts. In this
case one or more person has the responsibility of providing a solution in relation to the dispute.
The person or a person who have such responsibility is known as the arbitrator. This type of
ADR is put in place often in order to address commercial disputes. The Arbitrator decides the
situation based on relevant evidence and provisions of law. In case of a binding arbitration the
parties to the dispute are bound by the decision of the arbitrator. Arbitration is expensive as
compared to other form of ADR as it involves high fees for arbitrator. However it provides a
timely solution to the dispute (Hyman 2015).
Mediation
This is another form of ADR which is put in place to resolve a conflict. It is a interactive,
dynamic and structured process where assistance is provided by a their party to the disputing
parties to resolve a conflict. In this case the mediator utilized specialized negotiation and

2BUSINESS LAW
communication techniques to address the dispute. In case of mediation all participants are
motivated to actively have a say in the process. The process is quick and is cost effective as
compared to Arbitration. However it may sometime not result in a solution as the parties to it
may not agree to come to a mutual conclusion (Donaldson 2014).
Negotiation
Negotiation refers to a dialogue which takes place in relation to the parties to a dispute.
This takes place so that a beneficial outcome may be attained by the parties in relation to a
dispute in a mutual manner. However in this form of ADR the beneficial outcome may always
not be in favor of all parties involved but to a few parties only. The outcome is also dependent
upon the techniques of negotiation used by the parties to the dispute (Dye 2017).
Conclusion and ranking of ADR
From the above discussion it can be stated that all three kinds of ADR comes with their
own advantages and disadvantages. However, I would rank Arbitration as the best form of ADR
because it is not only cost effective but also provides decision and solution based on evidence
and legal provisions. Although it is more time consuming and costly than the other ADR it
provides a concrete decision. Then I would rank mediation because of the skill of mediator
involved in the process and which is followed by Negotiation.

3BUSINESS LAW
References
Donaldson, L., 2014. Alternative dispute resolution. ADR, Arbitration, and Mediation, p.91.
Dye, J.C., 2017. Alternative Dispute Resolution. The Catholic Lawyer, 33(1), p.12.
Hyman, J. (2015). Alternative Dispute Resolution.
Meyerson, A.L., 2015. Alternative Dispute Resolution. GPSolo, 32, p.6.