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Pros And Cons Of Alternative Dispute Resolution

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Negotiation, mediation, and arbitration are all forms of Alternative Dispute Resolution (ADR) that are alternatives that organizations use to avoid litigation in court. According to Valenti Law, negotiation and mediation are forms of non-binding ADR, while arbitration is a binding ADR (2011). Since arbitration is a binding ADR, the arbitrator’s decisions are legally binding and cannot be challenged by either party in the arbitration. “There are limited grounds for challenging the decision” (Valenti Law, 2011).

Although the arbitrator’s final awards are legally binding, an unhappy party of arbitration may still go to court under certain circumstances. As mentioned by Fallon & McConnell, “unless one party protests that there was a gross injustice, collusion, or fraud, arbitration that is specified by a contract can be converted into a legal judgment. This requires a petition to the appropriate court” (n.d., p. 388). As expected, this can become costly for the person who is seeking to appeal.

It is unlikely that one can still go to court if they signed an arbitration agreement upon being hired, which most organizations are utilizing to prevent costly lawsuits from disgruntled employees. As explained by Valenti Law, “if you sign a contract with an arbitration clause, it is usually binding - you can’t change your mind later” (2011). Thus, there are no steps that one can take if they would rather go to court if an agreement was signed before starting a job position.

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