Alternative Dispute Resolution (ADR) for Contractual Disputes Analysis

This report examines Alternative Dispute Resolution (ADR) strategies for resolving business-related contractual disputes. It explores two primary ADR methods: arbitration and mediation. The report details the processes, benefits, and drawbacks of each, emphasizing their cost-effectiveness and efficiency compared to court proceedings. It highlights the roles of mediators and arbitrators, the confidentiality of the process, and the importance of communication and mutual understanding between parties. The analysis covers the legal and practical implications of ADR, including the impact of directors' decisions on legal values and business relationships. The report also discusses the positive and negative impacts of ADR solutions on businesses, emphasizing the importance of compliance and the need for effective communication and fair solutions. The conclusion underscores the efficiency of ADR and its role in maintaining business relationships.

P4 Legal solutions for described cases
The company is making contract with different organisations and people in order to
procure computer services, site maintenance, office furniture etc. while making the contract they
are facing lots of issues which they want to settle outside the court. Alternative Dispute
Resolution is the way by which they can settle their dispute outside the court.
It is through ADR that the disputes can be solved between the customers and the traders
where there is no involvement of the court. The government of the UK have made these types of
forums, with that they are trying to encourage the development of ADR. If this is working in an
effective manner, then they should also be good for all businesses committed to giving their
customers the best possible service (Yell, 2016). There are two types of ADR, that are
Arbitration and Mediation. When it comes to the arbitration, then a third party is being assigned
which collect the different facts and findings and then take the decision on the behalf of both of
the parties. Other than that, when it comes to the mediation, then the third party try to solve the
dispute by mutually accepting the outcome. When it comes to the UK, the government have
made several ADRs which have been serving in several schemes, which includes energy,
financial services, telecoms etc. Other than that, different businesses are also the members of
ADR so that they can easily understand the different parties involved in the disputes (Campbell
and Boothby, 2016).
There are several benefits of ADR because the dispute does not reach to the court and
solved in the minimum time. The benefits that are parties need to pay the fees of court, they can
avoid going to the court and it is more complicated than the ADR and still both of the parties can
receive the compensation. Conciliators and mediators are the people who are being assigned and
appointed by both of the parties on the mutual agreement. When it comes to the mediation, then
it is completely voluntary and confidential form of dispute solution. These are the people who do
not make any judgement, but they solve the dispute by following the proper process (Crane and
Matten, 2016). In this, they first ask the question that can help him or her to uncover the different
problems. Then he or she organises a meeting which helps both of the dispute parties to
understand the cause and effect of the issues. Further, he or she finds the different alternatives
and analyse them to find the solution and then those are communicated to the disputed parties in
order to implement it and solve the dispute (Kitagawa, 2016).

Other than that, when it comes to the Arbitration, they are the independent person which
are assigned and appointed from the Chartered Institute of Arbitrators (CIArb). Complain is
being made by the both of the dispute parties and on the basis of that, complain arbitrator try to
find the cause of dispute and then take the decision (Kotiswaran, 2014). In this, both of the
parties send the paper evidence to the arbitrator and the basis of that evidence, effective decision
is being taken by the person. The decision which is being made by the arbitrator are legally
binding and the parties need not go to the court when they are not agreed to the decision made by
the arbitrator.
P5 & D2 Justification of solution
The method is being used by the both of the parties because it serves the different
benefits to them which is cost effective and does not consume huge time to make the decision in
order to solve the dispute. When it comes to the mediation, then these are the authorities who
create the effective communication between both of the parties. Communication is the way by
which half of the problem or dispute solve, this is because if both the parties such as supplier and
organisation do not have communication then how they can able to find the different cause of the
problem. Other than that, both parties’ point of view has been listened by the third party so there
is no discrimination takes place (Kumie, 2016). This the greatest advantages that can be made
from the appointment of the third party for the solution of dispute where there is no intervention
of the court. Other than that, both of the disputed parties have to be agreed for the decision made
by the mediator with the help of mutual understand in order to solve the dispute on time. Thus, it
can be said that this process is not slow and there is no complexity in solving the solution of the
dispute. Other than that, third party do not give advantage to only one party rather it tries to solve
the problems of both of the parties. With that, it is quite simple as compared to other grievance
resolution methods. Moreover, the dispute is remained confidential and never being discussed
openly (Turner, 2015). In addition to this, it can be said that directors plays a critical role in
organisation so the decisions regarding legal values need to be developed accordingly. It is
necessary for director to comply with the company’s constitution and decisions made under the
constitution and to exercise the powers only for the reasons for which they were given. Director
also need to foster the company's business relationships with suppliers, customers and others; the
impact of the company's operations on the community and the environment.

M3 Positive and negative impact of business solutions
Alternative resolution solution is quite effective in solving the organisational problem,
the whole process is quite quick and help in reaching a final solution, it's also cost efficient and
require significantly less money. With the help of this the firm can resolve the conflict in less
time without affecting the profitability of the firm. The only disadvantage it has that the parties
are not obliged to follow the final decision made by arbitrators.