Advantages And Disadvantages Of ADR

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CHAPTER 1 INTRODUCTION

1.1 Alternate Dispute Resolution
Alternative dispute resolution (ADR), also known as external dispute resolution, includes dispute resolution mechanism, processes and techniques that act as a means for disagreeing parties to come to an agreement short of litigation. This is a collective term for the ways that parties can settle disputes, with (or without) the aid of a third party. The increasing popularity of ADR can be explained by the increasing caseload of traditional courts, the perception that ADR imposes lesser costs than litigation, a preference for confidentiality, and the desire of some parties to have greater control over the selection of the individual or individuals who will decide their dispute.
While
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In most legal systems there are very limited avenues for appeal of an arbitral award, which is sometimes an advantage as it limits the duration of the dispute and any associated liability Some of the disadvantages include:
Arbitration may become highly complex
• Arbitration may be subjected to the pressures from powerful law firms representing the stronger and wealthier party
• Arbitration agreements are sometimes contained in ancillary agreements, or in minute print in other agreements, and consumers and employees many a times do not know in advance that they have agreed to mandatory binding pre-dispute arbitration by purchasing a product or taking a job
• If the arbitration is mandatory and binding, the parties generally waive their rights to access the courts and to have a judge or jury decide the case
• In some arbitration agreements, the parties are required to pay for the arbitrators, which adds an extra layer of legal cost that can be prohibitive, especially in small dispute matters
• In some arbitration agreements and systems, the recovery of attorneys' fees is not available, making it difficult or impossible for consumers or employees to get legal representation however most arbitration codes and agreements provide for the same relief that could be granted in
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