Business Law: Analysis of Alternative Dispute Resolution (ADR) Methods

This report provides a comprehensive overview of Alternative Dispute Resolution (ADR) within the context of business law. It begins by defining ADR and highlighting its significance in resolving disputes outside of traditional court proceedings. The report then delves into various ADR methods, including mediation, arbitration, neutral evaluation, mini-trials, and summary jury trials, detailing their processes and applications. It explores the advantages of ADR, such as lower costs, faster results, flexibility, confidentiality, and the preservation of relationships, while also addressing potential disadvantages like the lack of guaranteed resolution, limitations on awards, and the non-binding nature of some decisions. The report emphasizes the importance of ADR in fostering cooperative negotiation and its suitability for various types of business disputes. Finally, it provides an in-depth analysis of each ADR method, explaining their specific procedures and benefits, making it a valuable resource for understanding and implementing ADR strategies in business law.

BUSINESS
LAW

Table of Contents
TASK 5............................................................................................................................................3
5.1 Description on the concept of alternative dispute resolution................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
The term business law deals with various kind of laws which is important to conduct the
business effectively. It is encompasses that all the laws which are helpful in order to dictate that
how to run the business in specific manner. This is the kind of process which works as to takes
place in the private setting, and it’s informal. In addition to this, it is the negotiation and it
provides an opportunity to discuss feelings, perception of the conflict, interests, and array of
settlement options also, it conserves the privacy of records and documents. The business law is
defined as body of rules, which are helpful in order to determine the systematic functioning of
business activities (Bodie, Kane and Marcus, 2014). The present assignment has covered the
activities as Alternative dispute resolution, methods and its advantages and disadvantages. In
addition to this, various kind of benefits of ADR has been examined. The main aim of individual
in the present days is to conduct the activities of the firm with the help of putting major
consideration over all kind of legal factors which are issued by the legal authorities. Thus, the
method of arbitration is not considered in report.
TASK 5
5.1 Description on the concept of alternative dispute resolution.
The term derived as various kind of variance of process which helps the parties of
companies to resolve the dispute without any kind of trail procedure. This is assistive in order to
setting of the dispute without any kind of legislation such as are arbitration, mediation, and
negotiation. This is the procedure which is less costly and less expeditious. The ADR works as
decision making process with the help of which potential litigants can resolve their dispute and it
is very helpful for the people to sort out the issues between them (Cameron, 2017). Thus, it can
be aid that this kind of the method can be used in the labour and commercial dispute, resolving
tax laws, divorce actions and this all helps the people in dispute to sort out the issues between the
procedure. It works as to understand each other position (Eren and et.al.,2014). With the help of
this the parties' comes with more creative resolution which the court may not be legally allowed
to impose. It is helpful in order to setting the dispute, so that process of ADR can work in the
effective manner. It is one of the flexible method and it is helpful for the any kind of dispute.
The Using of ADR can work as to-
 It is helpful in resolving the issues in the dispute.
 It is assistive in providing fairness.

 It is very effective in order to achieve the outcomes for everyone involved in the dispute.
In addition to this it can be said that the process of ADR is less expensive as compare to other
kinds of ways of solving the dispute (Folsom and et.al., 2012). It is helpful in order to maintain
the relationship with the people. Moreover, it can be said that this is the process which is less
stressful other than the proceeding of the traditional courts. This term is also derived as the
external dispute resolution in some countries. There are various kinds of benefits to the ADR'S
as are-
Benefits in relation to ADR-
In this the trial is not only for to resolve the legal dispute. If they case has been stated but the
parties to the proceeding need to stand outside the court by using the method of Alternative
dispute resolution (Johnson, 2013). These are defined in the following manner as are-
Lower cost- This can be stated that proceeding of alternative dispute resolution is less expensive
ans compare to the tradition proceeding. In this the parties compromise with each other in the
short span of time. Due to this there is only two or three times fees given to the lawyer for
resolving the dispute.
Faster result- In this it can be stated that the dispute can take the many years before the case
goes for the trial. Thus, it can be said that the ADR can come in the process of litigation and with
the help of this they are able to obtain the faster result (Kinicki and Kreitner, 2012).
More flexibility- In this the parties are free to decide process of ADR at anytime without having
wait for the court session. This kind of the situation not speed up the working procedure but also
speed up the whole procedure and it is also helpful in order to provide flexibility.
Confidentiality- The process of the ADR is the technical process whereas the judgement, court
litigation and decision are generally public records. If the parties settled out all the things in the
arbitration and mediation than there are no public records are exists of what has developed at the
meeting of negotiation.
Neutrality- in this it can be said that the Mediator and Arbitrator is the specialist in the process
of ADR and having no interest in the outcome of the dispute. There is one of the major
advantage is that the parties to the dispute are free to decide the arbitrator or mediator with the
help of special knowledge from the area of law in questions rather than left the decision on the
judge and jury (Kinicki and Kreitner, 2012). In this it can be said that the neutral professional
can handle the dispute of ADR proceeding in the effective manner.

Cooperative negotiation- in this the parties to the ADR can use this process as an opportunity to
preserve the relationship. In this the parties can preserve their relationships and the reputation in
the proceeding of the court.
There are various disadvantages to ADR
No guaranteed resolution- In this it can be said that the process of Arbitration resolution does
not always lead to the resolution. This termed define as if it is possible to invest the time and
money in relation to trying to resolve the dispute out-of-court and still end up all the things
having to continue with litigation and trial before a judge or jury.
Arbitration decision are final- In this it can be said that the decision of the neutral arbitrator
cannot be appealed. In this manner there are few states will not enforce decision of arbitrator ans
there are plenty of unfair things happened in order to meet out the high standards to meet. The
decision of the arbitrator cannot be as the final decision (Lieberman and et.al., 2016).
Limits on arbitration awards-This is one of the limited proceeding. In this they can only
resolve the dispute which is inclusive of the money. They are not able to the issues in these
parties to the contract are restrained to don something, this all process worked as the injunction.
Non binding arbitration- The decision of the arbitration is not binding on the parties to the
dispute. Thus, it can be said that if the parties do not satisfied with the decision of the arbitrator
Than they can work as to submit the request for the trial in the court in order to take the further
proceeding (Lyons, 2013).
Types and process of arbitration-
Mediation- It can be called as the mediator. He is the individual who helps the parties to
reach the particular agreement. In this it can be said that the term mediation, the mediator assists
to parties to come to a mutual acceptable declaration of their conflict. In addition to this it can be
works as that the parties may meet in the same room, can be stay in separate offices. Thus, judge
at the trial or an arbitrator at an arbitration hearing, cannot decide how to resolve the conflict
between the parties (Nichols, 2012). In this kind of the situation the parties to the dispute
themselves decide to resolve or settle their own dispute. It can be true to said that the parties
work together in order to come to a mutually acceptable compromise which works as to satisfies
everyone, rather than arguing against each other. The one of the major advantage in this relation
is that this is helpful in order to have the better communication between the parties and their
lasting resolutions. This all kind of the activities are particularly very important at the time when

parties have continued relationship with each other, such as neighbours or businesses. It can also
be effective where personal feelings are getting in the way of a resolution and a professional
mediator can be brought in to act as the person who are responsible to sort out the conflict
(Lieberman and et.al., 2016). Thus, it can be said that the process of the Mediation normally
gives the parties a chance to explicit their concerns in a voluntary, confidential process at the
time of working towards a resolution and compromise so that each things can be carried out in
the effective manner. Moreover, the mediation can provide the greatest source of flexibility for
parties. In this situation it can be said that this type of resolution is particularly helpful in relation
to maintain the high stakes' litigation when the run away jury could break the business.
Arbitration- In the process of Arbitration, impartial individual called authority hears the
contention and evidences of each gathering and based on the contention gives the after-effect of
the debate. Assertion is additionally classified into two subs writes i.e. Restricting assertion and
Non-restricting discretion. Restricting assertion remains for the gathering which are prepared to
handover full case to judge and concur the ultimate choice of authority (Nichols, 2012). Non-
restricting intervention is the procedure in which the gatherings are allowed to differ the choice
of mediator and interest for more trials. It is more valuable for the situation where two gatherings
needs third individual to choose the determination to their debate yet in less time, cost and
hearings.
Unbiased evaluation- In unbiased evaluation the fair minded individual called evaluator offers
opportunities to both the gatherings to exhibit their sides (Bodie, Kane and Marcus, 2014). The
evaluator at that point portrays quality and shortcoming of each gathering and contentions with
both the gathering and demonstrates the route about how the debate can be settled.
Mid-arb- it is the kind of mixture of the arbitrations and mediation which combines the benefits
of the methods. In this the parties commence with the mediation and if the one particular
agreement in relation to this had not been reached to the person in the effective manner. In this
kind of the situation they move to the arbitrator.
Mini trial- It is one of the well-known concept of alternative dispute resolution (ADR) process
and involves effective measures to solve any legal dispute from a formal court hearing. It is
similar to the other procedures known as meditations and arbitrations and constitutes unique
systems of ADR. It is also being favoured by the plaintiffs and courts where it is a very effective
measure for a quick resolution of the dispute. It has several number of benefits involving fast

resolution of an issue in a reduced cost and increased confidentiality. Also, it is less hostile in
nature. Mini trials are not always considered as trials with much consideration of a settlement
process. Herein, the parties are known to present themselves in a highly shortened styles to
acknowledge their cases in brief to the official panel with a special involvement of the one
responsible to settle down the case (Sheffield, Crippen, and Beier, 2018). Mini trails generally
exist in a private forum and outside the courtroom where once after the parties are done with
their case presentations, it ends with panel’s set up who attempts to settle down the matter.
Summary jury trial- It is yet another effective measure of ADR technique that consists of no
more than 4 juries and makes settlement in usually one day. It is however used for an early
evaluation of the case to further develop realistic settlements encompassing through the process
of negotiation. It is directed by the court with limited number of jurors and evidences. It has
distinct set of norms where the decisions taken up by the jurors are merely recommendations
with no such binding imposition on the party to follow the same.
Negotiation- This being one of the most common measure is mostly used in the technique of
ADR. It consists of different characteristics where a negotiation could be formal or in formal.
Also, it could be voluntary where any of the involved parties in a dispute cannot be forced to
participate in this process (Marriott, Schilling and Gravani, 2018). It is mostly confidential and
can be carried out in 2 common forms called bilateral and multilateral. Lastly, it is also referred
to have a flexible nature where the involved parties are free to decide a particular approach to
negotiate and it could be either a bargaining approach or an approach based on the interest.
However, it does not guarantee success to any of the parties involved in the process of
negotiation to resolve a dispute.

CONCLUSION
Based on above report it can be concluded that The business law is defined as body of
rules, which are helpful in order to determine the systematic functioning of business activities.
Thus, the present assignment has covered the various activities as are alternative dispute
resolution, methods and its advantages, disadvantages and various kind of benefits of ADR has
been examined. It is encompasses that all the laws which are helpful in order to dictate that how
to run the business in specific manner. The process of ADR is less expensive as compare to other
kinds of ways of solving the dispute.

REFERENCES
Book & journal
Bodie, Z., Kane, A. and Marcus, A. J., 2014. Investments, 10e. McGraw-Hill Education.
Cameron, P., 2017. International Energy Investment Law: The Pursuit of Stability. OUP
Catalogue.
Eren, S. S. and et.al.,2014. International Business Machines Corporation, 2012. Caching message
fragments during real-time messaging conversations. U.S. Patent 8,255,473.
Folsom, R. H. and et.al., 2012. International business transactions: a problem-oriented
coursebook. ThomsonReuters.
Foss, N. J. and Knudsen, C. eds., 2013. Towards a competence theory of the firm (Vol. 2).
Routledge.
Johnson, L., 2013. Unsettledness Delaware Corporate Law: Business Judgment Rule, Corporate
Purpose. Del. J. Corp. L.. 38. p.405.
Kinicki, A. and Kreitner, R., 2012. Organizational behavior: Key concepts, skills & best
practices. McGraw-Hill Irwin.
Latimer, P., 2012. Australian Business Law 2012. CCH Australia Limited.
Lieberman, J. and et.al., 2016. Business law and the legal environment.
Lyons, M., 2013. Pro-poor business law? On MKURABITA and the legal empowerment of
Tanzania's street vendors. Hague Journal on the Rule of Law. 5(1). pp.74-95.
Nichols, P. M., 2012. The business case for complying with bribery laws.American Business Law
Journal. 49(2). pp.325-368.
Online
What is Alternative Dispute Resolution(ADR)?. 2017. [Online] Available through:
<https://www.legalmatch.com/law-library/article/types-of-alternative-dispute-resolution-
adr.html>.