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ADR, Arbitration & Mediation
ADR or Alternative Dispute Resolution refers to measures to settle disputes or disagreements outside the classical judicial system without litigation or a court of law. Many companies and competing parties prefer ADR due to reasons such as:
It is often faster than receiving a final judgment in court.
ADR allows the opposing parties to choose the person/institution of the mediator or arbitrator who brings more sector-specific expertise to resolve the dispute.
ADR would keep the dispute confidential. So, there is no public record that would damage the reputation of the parties.
The parties can set the rules of procedure according to their needs.
Alternative dispute resolution has two popular major categories which are Arbitration and Mediation.
Arbitration & Mediation
Arbitration refers to a method where a dispute will be decided by a third party called an arbitrator agreed upon by the parties.
Mediation means settling a dispute by negotiation, which can be attempted in almost all dispute cases. It requires a third party called a mediator who is an independent third party that aids the disagreeing parties to attempt the negotiation.
Anyone can be an arbitrator and mediator but having someone who knows about the law and the specific topic such as a lawyer is much easier to resolve a dispute.
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