Business Law - Chapter 4: Alternative Dispute Resolution - Key Terms

adversarial negotiation

Negotiation in which each party seeks to maximize its own gain, often at the other's expense.

alternative dispute resolution (ADR)

Methods of resolving disputes outside ordinary court litigation.

arbitration

An ADR process in which a neutral arbitrator hears the parties and issues a decision.

binding arbitration clause

A contract provision requiring specified disputes to be resolved through binding arbitration.

med-arb

A process beginning with mediation and moving unresolved issues to arbitration.

mediation

A nonbinding process in which a neutral mediator helps parties reach their own settlement.

minitrial

A structured, abbreviated presentation of each side's case to business representatives who then negotiate a resolution.

negotiation

Direct discussion between parties seeking a mutually acceptable resolution.

private trial

A privately funded trial-like proceeding before a neutral decision maker, typically resulting in a binding decision.

problem-solving negotiation

Negotiation in which parties cooperate to find options that create joint gain.

submission agreement

An agreement made after a dispute arises to submit that dispute to arbitration.

summary jury trial

A shortened, nonbinding trial before an advisory jury used to promote settlement.