Alternative Dispute

Running Head: Alternative Dispute Resolution

Alternative Dispute Resolution

Terry L. Ware Sr.

Business Law and Regulation

October 29, 2011

Alternative Dispute Resolution

When purchasing an item, we have to keep in mind that there is always the possibility that something may go wrong with the item, especially if it is an electronic item. In most cases when you purchase large dollar amounts and they end up defective, companies usually take care of the problem. In some cases however, they choose to say they are not responsible and as a customer you decide to file a lawsuit. An alternative dispute resolution would really help in this case because it would be quicker than a lawsuit. Negotiation and Arbitration are just two of the ADR’s that would be very useful.

The first ADR that you may decide to use is Negotiation. Negotiation is a procedure whereby the parties to a dispute engage in negotiations to try to reach a voluntary settlement of their dispute (Cheeseman, 2010, p. 44). In this process both parties will negotiate with one another making offers and counteroffers in order to reach a solution that they both agree on. During this process both parties may or may not be represented by lawyers. Once an agreement is reached a settlement agreement is drafted which includes the terms of the agreement that the parties came up with. I think this ADR would be a reasonable way to solve this issue verses taking it to the court system, it will save you time and money.

The second ADR that you may decide to use is the Arbitration process. This is defined as a form of ADR in which the parties choose an impartial third party to hear and decide the dispute (Cheeseman, 2010, p. 44). Within this process an arbitrator is usually used as the neutral party. An arbitrator is normally members of the American Arbitration Association or some other arbitration association. During this process both parties must...