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P4 M2 Adr

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P4 Alternative Dispute Resolution (ADR) is a way of settling disputes without going to court. There are four ways of ADR, these are:
Negotiation
Mediation
Conciliation
Arbitration Negotiation: this is the first way of ADR and the parties involved (which is usually two or more) attempt to come to an agreement or try to compromise before using any other methods of ADR. This can be done with or without a solicitor however the decision made is not legally binding. Negotiation is private as only the parties involved are there when the negotiation takes place, it is also cheap as there is no cost unless a solicitor is involved.
Mediation: there are always three or more parties involved in mediation and one of the parties is the mediator. The mediator doesn’t have an active role in resolving the dispute but acts a facilitator so the parties find a way to solve their issues themselves, even if the issue is resolved the decision made isn’t legally binding.
Conciliation: unlike mediation where the mediator doesn’t have an active role, in conciliation the conciliator does. The conciliator suggests ideas that would solve the dispute between the parties however the decision that may be reached is not legally binding. Rather than the parties going to court conciliation is offered to them as an alternative, this is usually done in the workplace.
Arbitration: out of all methods of ADR arbitration is the only one where the arbitrator has the authority to make the decision legally binding as the decision is governed by the ‘Arbitration Act 1996’. As arbitration is voluntary both sides must agree to arbitration. They also choose the place, time, date and number of arbitrators. Many business contracts now have a ‘Scott v Avery clause’ this states that rather than going to court they must use arbitration.

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