Discuss the Processes Available in Alternative Dispute Resolution

1469 Words Oct 21st, 2007 6 Pages
Discuss the processes available in alternative dispute resolution and explain its advantages and disadvantages

Alternative Dispute Resolution

Alternative Dispute Resolution (ADR) includes methods of processes and techniques that are used to resolve disputes or disagreements outside the jurisdiction of the law. As explained by Paul Latimer (p 51 of the Australian Business Law CCH Handbook 2006) The Alternative Dispute Resolution Association of Australia has defined ADR as meaning ¡§dispute resolution by processes:
a) which encourage disputants to reach their own solution and
b) in which the primary role of the third party neutral is to facilitate the disputants to do so.¡¨
The main purpose for an alternative dispute resolution is
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It is regulated by the Commercial Arbitration Acts on a state and international level. Parties resolve through arbitration when negotiation, mediation or conciliation fail to provide the desired agreement or when a referral by a judge is made.
The aim of an arbitration is to get finality and an enforceable award.
Some key advantages for arbitration is the avoidance of publicity (for reason of proceedings conducted in privacy); avoidance of delay in having the dispute settled; and for technical disputes, technical experts can be appointed with the right qualifications to handle matters with higher levels of complexity.
Arbitration is generally viewed outside of the definition of ADR as its decisions are binding and regulated by legislation. The government has created many facilities to lower legal costs (it¡¦s most notable advantage over litigation) and can be viewed as a positive attribute to the modern legal system.
The discussion of the commercial arbitration is evident with many authors in their writings. In particular, Terry & Guigni, Business, Society and the Law (2003) outline the critical views on its purpose and how the promise has been compromised. Negativity does flow through due to
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