Final answer:
The two most common types of dispute resolution alternatives are arbitration and mediation. Arbitration involves a binding decision from a third party, while mediation seeks a mutually agreed solution. Both aim to be more efficient and private than traditional court litigations.
Step-by-step explanation:
The two most common types of dispute resolution alternatives are arbitration and mediation. Both methods serve as alternatives to litigation, which involves going to court. In arbitration, a neutral third party, known as an arbitrator, hears the dispute and renders a decision, which is often final and binding on the parties. On the other hand, mediation involves a neutral third-party mediator who facilitates a dialogue between the disputing parties to help them reach a mutually agreeable solution, without offering a binding decision.
These alternatives are popular because they can be more cost-effective and time-efficient than traditional court proceedings and can provide a more private way to resolve disputes. Courts, including small claims courts, are state institutions that may handle certain civil matters, like small sums of money, without a jury and are decided by a judge working alone. However, these options are distinct from the procedures of entities such as the International Court of Justice, which deals with disputes between countries, or federal courts, which, along with state courts, handle both civil and criminal matters.