2 Alternative Dispute Resolution

Flashcards covering key terms and concepts related to Alternative Dispute Resolution (ADR) in business law, including negotiation, mediation, and arbitration.

Alternative Dispute Resolution (ADR)

Methods for resolving disputes outside of traditional litigation, often faster and cheaper.

Negotiation

A bargaining process where parties interact informally to resolve a dispute, without a neutral third party.

Adversarial Negotiation

Each party seeks to maximize its own gain during negotiation.

Problem-Solving Negotiation

Parties seek joint gain and mutually beneficial solutions during negotiation.

Mediation

A neutral third party helps facilitate communication and suggests ways to resolve a dispute.

Confidentiality (in Mediation)

Ensures proceedings are private and not disclosed outside of the mediation.

Arbitration

Resolution of a dispute by a neutral third party outside the judicial setting.

General Qualifications for Arbitrators

Honesty, impartiality, and subject-matter competence.

Award (in Arbitration)

The arbitrator's decision, even if no money is awarded.

Federal Arbitration Act (FAA)

Federal law enacted to encourage the use of arbitration.