We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Alternative Dispute Resolution Essay Sample

essay
The whole doc is available only for registered users OPEN DOC
  • Pages:
  • Word count: 762
  • Category: contract

Get Full Essay

Get access to this section to get all help you need with your essay and educational issues.

Get Access

Alternative Dispute Resolution Essay Sample

This report will discuss the different processed for Alternative Dispute Resolution (ADR) and the advantages and disadvantages of each type. Types of ADR

Negotiation

This form of ADR is give and take. The parties involved engage in discussions in order to come to terms with each other (Bagley & Savage, 2010). Negotiations can either take place to ensure future relations are positive – this is referred to transactional negotiation. The other form of negotiations is dispute negotiations. This form of negotiations addresses past events that may have lead up to discord between the parties involved. A manager can prepare for negotiations by coming to the negotiation table with an open mind and willingness to hear the opposing party. Also, the manager should know the facts surrounding the dispute and look at any past negotiation the organization may have participated in similar to the dispute and the resolution.

The advantage of negotiations sometimes allows for parties to walk away from the negotiation with both parties a winner. This type of negotiation is referred to a integrative negotiation were both parties work out an agreement that both parties can receive more than originally agreed and the relationship can be preserved (Bagley & Savage, 2010). If both parties have an equal interest, the negotiation can turn bitter, because neither party is willing to give up more than they are willing to gain. This type of negotiation is referred to as distributive negotiations (Bagley & Savage, 2010). Neither party in this type of negotiation comes out as a winner, because typically the business relationship is lost.

Mediation

Mediation is conducted between the disputing parties and a third-party that is there to assist the parties in reaching a mutually satisfactory resolution (Bagley & Savage, 2010). In mediation, the mediator does not reach the resolution; the parties in the mediation in reach a resolution and agree to abide to it. Mediation allows for parties to reach resolutions that are agreeable to both and preserve relationships that may fall apart if the parties involved have to go undergo formal litigation. A manager can prepare for this type of ADR, by entering the mediation with a clear understanding of what the organization is looking to gain or willing to lose with the mediation. This will require the manager to speak with leadership, present the facts as they are known and get come to a reasonable solution.

The advantage of mediation is that mediation often happens quickly and inexpensively. Companies can save money with mediation and can most times resolve disputes without going into formal litigation. A disadvantage of mediation is that the resolution is not binding. Either party can choose to pursue formal litigation at any time after the mediation. Another disadvantage of mediation is that parties do not have their legal rights protected in mediation. Mediation can also be disadvantageous to a party, if both parties do not have the same bargaining power. Mediation procedures can be enforced with both parties has a representative present that has the authority to settle the dispute. The terms of agreement should also be in writing.

Arbitration

Arbitration is the most formal ADR process. In a binding arbitration both parties using arbitration enter into a binding agreement and both parties are bound by the arbitrator’s decision (Bagley & Savage, 2010). A manager should be prepared for this type of arbitration by entering into the arbitration with a reasonable and fair offer. In this type of arbitration the parties will bring a proposal to the arbitrator and the arbitrator will choose one of the proposals. If a party brings an unreasonable offer to the arbitration, that party will more than likely lose.

In a nonbinding arbitration, the arbitrator will hear both sides of the argument and examine the evidence (Bagley & Savage, 2010) if an agreement cannot be reached, this type of arbitration can be used as a baseline for what a court may decide (Bagley & Savage, 2010). The advantage of a binding arbitration is that both parties are bound by the arbitrator’s decision and both parties are legally bound to that decision. Another advantage is that parties can select an arbitrator that is familiar with their industry or particular dispute. The disadvantage of arbitration is that arbitrators are not required to apply rules of evidence or procedure and also the decision of the arbitrator cannot be appealed.

Reference
Bagley, C., & Savage, D. (2010). Managers and the legal environment: Strategies for the 21st century. (6 ed.). Mason, OH: South-Western Cengage Learning.

We can write a custom essay

According to Your Specific Requirements

Order an essay

You May Also Find These Documents Helpful

Legally enforceable between Super Fine Oils Ltd...

The agreements are reached by family members or spouses cannot be lawfully operated. The case is Balfour v Balfour. At the time that they travelled to England, Ms. Balfour unfortunately felt unwell then the doctor said she should stay in England until she recuperated. Meanwhile, Mr. Balfour promised to provide her ? 30 per month until she recovered. Later, due to the separation, Mr. Balfour...

The government’s promise for the sponsorship

The courts presume that the vague or illusory promises are not seen as a valid contract. In the case of Placer Development Ltd v Commonwealth, the Commonwealth government sponsored an unspecific amount for Placer Development to import timber into Australia. After the first payment, the government stopped the sponsorship. Therefore, the Placer desired to claim the government for the payment. Had the government’s promise for...

Enterprise Resource Planning

KEY WORDS: - (RC) Rate contract, (ERP) Enterprise Resource Planning, (ICE) Information Consolidation for Efficiency, (OEM) original equipment manufacturers, (EPC) executive purchase committee, (MM) materials management, (PR) Purchase Requisition, (PO) Purchase Order, (LOI) Letter of Intent, (EMD) Earnest Money Deposit, (BEC) Bid Evaluation Criteria, (NIT) Notice Inviting Tender,(TC) Tender Committee,( E&P) Exploration and Production, (MTOE) Million Metric Tons of Oil Equivalent, (PSU) Public Sector Unit,...

Invitation to Treat

The advertisement offered by the company is an invitation to treat. Invitation to treat is a preliminary communication between the parties at the stage of negotiation. It is an attempt to induce a proposal or offer. This advertisement of the company is an invitation to treat because this advertisement is inviting other parties to form a contract with the company. However, the company have the...

Minors' Capacity to Contract

One of the elements constituting a valid contract is that the parties entering the contract are those who have the competency to contract. This is based on section 10 (1) of the Contract Act 1950 which states: “All agreements are contracted if they are made by the free consent of parties competent to contact, for a lawful consideration and with a lawful object, and are...

Get Access To The Full Essay
icon
300+
Materials Daily
icon
100,000+ Subjects
2000+ Topics
icon
Free Plagiarism
Checker
icon
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access
immediately?

Become a member

Your Answer Is Very Helpful For Us
Thank You A Lot!

logo

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?

Couldn't Find What You Looking For?

Get access to our huge knowledge base which is continuously updated

Next Update Will Be About:
14 : 59 : 59
Become a Member