List and explain two methods of alternative dispute resolution (ADR) and potential advantages and disadvantages of using ADR.

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ADR (alternative dispute resolution) refers to a group of methods that can be used without the need to resort to expensive court battles. Arbitration and mediation are two common methods. Both involve third-party neutrals to help come up with the best solutions.

Arbitration involves two sides presenting their respective cases before an unbiased panel who then renders a decision based on applicable laws & regulations. It is quicker than litigation, and the rulings are often binding. This reduces chances of future disputes. Mediation on the other side requires that mediators act as mediators, encouraging parties to come to an agreement through mutual dialog.

The main advantages of using ADR would be faster settlements, lower costs & greater confidentiality compared with traditional litigation although certain issues such as enforcement/appeal procedures etc., may vary depending on which particular technique is employed. Organizations should not have any problems managing their legal affairs by using these approaches whenever possible.

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