Question

The ADR procedure in which the disputing parties hire a private neutral person to whom they will argue their cases and who will then render a decision to resolve their dispute, is called:

a. Arbitration
b. Mediation
c. Negotiation
d. Litigation

Answer 1

The ADR process where disputing parties hire a neutral person who renders a decision is called arbitration. It differs from mediation, negotiation, and litigation, which are other forms of dispute resolution.

Step-by-step explanation:

The ADR procedure in which disputing parties hire a private neutral person to argue their cases to, who then renders a decision to resolve their dispute, is called arbitration.

In an arbitration process, the arbitrator has the authority to make a binding decision unless both parties agree to non-binding arbitration. It is different from mediation, where a neutral third-party helps the disputing parties reach a voluntary resolution, or negotiation, where the parties themselves try to come to an agreement. Litigation, on the other hand, involves taking the dispute to a court of law, where it will be resolved by a judge or a jury.