Procedures and techniques in which disputes are settled outside of the courtroom
Alternate dispute resolution (ADR) refers to procedures and techniques in which disputes are settled outside of the courtroom. These settlements are often negotiated by legal counsel representing the company. There are several types of ADR depending on the dispute. The federal government, large businesses, and small businesses can all benefit from resolving complaints this way. If your company has good corporate governance, it typically means there is a strong relationship with stakeholders, often including disclosure and transparency processes when sharing financial and operational aspects of the company.
Select one type of ADR. Provide an example of a business dispute that would use this type. How can using this type mitigate the concerns? Who from the business would need to be involved?
Type of ADR: Mediation
Example of a business dispute: A dispute between two businesses over a contract.
How mediation can mitigate the concerns: Mediation is a process in which a neutral third party, called a mediator, helps the parties to a dispute reach a mutually agreeable resolution. The mediator does not make a decision for the parties, but rather facilitates the discussion and helps the parties to identify areas of common ground and to negotiate a settlement.