BUSSINES LAW

BUSINESS LAW



Business Law

Alternative Dispute Resolution

It was in 1960s that the alternative dispute resolution was put into use in the American society. ADR refers to mechanisms that attempt to solve disputes, mostly outside the courts, or through non-judicial means. There are various kinds of ADR while the most common forms are mediation, arbitration, ombudsmen, negotiation and such others. ADRs are sometimes obligatory by the courts and they require the case to go through ADRs before taking them in the court.

The Civil Rights Movement in 1964 provided an impetus to the cause of implementation of ADR for commercial disputes. After that period, the Supreme Court and other statuary courts of the United States were overburdened with the huge number of commercial lawsuits; forcing unprecedented delays in the promulgation of decisions. This was the prime reason, why parties faced up with commercial disputes opted for the need of an alternative system and mechanism of dispute resolution. In the United States, the early Quakers exercised both mediation and arbitration to resolve their disagreements trade without resorting to litigation (Benson, 511-52).

Types of ADRs

Arbitration

In an event that the dispute fails to settle during the mediation process, procedure of arbitration shall occur. If the dispute fails to reach an agreement within three calendar days, the arbitrator shall be authorized to hear the conflict. The major role of an arbitrator will be decided through an appointment by all team members, excluding the party with prior or current association in the dispute. The decision of an arbitrator shall act as a final judgment and shall be binding upon both parties in dispute. He shall be utilized for events where team members do not want to contribute to the mediation process or failed to reach an agreement. The arbitrator will take notice of each team member's opinion upon the dispute and, if any, mediation reports and shall submit a decision within two calendar days.

Mediation

Mediation process involves the appointment of a neutral person, namely mediator, by the members of the team. The mediator shall involve an impartial communicator from either side of the parties in dispute. He shall involve no formal procedure of dispute resolution and does not have the power to bind the parties to his decision by force. The mediator will assist in maintaining the focus of the dispute and share insights about means of conflict resolution only. All means of communication during Mediation shall be kept confidential, and the Mediator shall not be called or considered as a witness in any succeeding legal action. Additionally, if resolution of conflict is not reached upon, any oral or written statement made during the dealings are precluded as evidence in succeeding legal action. Any information disclosed to the Mediator by one party, in a private convention, will not be exposed to any other party, except in cases where permission has been given to do so. The dispute will be mediated if it has one or more members of the team involved and it is regarding any project or ...