Description
Unformatted Attachment Preview
Purchase answer to see full attachment
Explanation & Answer
Please view explanation and answer below.
Running Head: LEGAL ENVIRONMENT OF BUSINESS
Legal Environment of Business
Student Name
Institutional Affiliation
Course
Date
1
LEGAL ENVIRONMENT OF BUSINESS
2
Alternative Dispute Resolution
Alternative dispute resolution is a process in which parties to a dispute voluntarily submit
their case to third-party facilitators who are trained in negotiation, mediation, arbitration or other
processes to reach a mutually acceptable agreement (Stražišar, 2018). Alternative dispute
resolution is used as a way to reach agreement without resorting to court action. As companies
have become more globalized and complex, they have needed ways to resolve disputes with their
partners and suppliers in a manner that is both cost-effective and efficient. This has led to a growing
interest in ADR as a way to resolve legal disputes quickly and inexpensively.
Businesses use alternative dispute resolution processes because they are more costeffective, which is why many business owners opt for mediation or arbitration instead of going to
court. Businesses can use alternative dispute resolutions in many situations, including contract
disputes and employment disputes (Ponte & Cavenagh, 1999). For example, if a contract dispute
arises between two businesses, the parties can choose to mediate the issue instead of going to court.
Or if there's an employment issue at a company like sexual harassment or discrimination, the
employer might choose arbitration rather than lawsuits from employees who feel wronged by their
employer's actions.
Businesses have a variety of reasons for engaging in alternative dispute resolution (ADR).
For example, if a business is sued by another party, it may prefer to resolve the dispute outside of
the court system—either because it is not prepared or willing to deal with the complexities of
litigation, or because it wants to avoid negative publicity. ADR can also be used as part of an
aggressive defense strategy. If a business knows that a lawsuit is coming, it may want to settle the
case before trial rather than risk an unfavorable judgment. In some cases, this will involve
negotiating with opposing counsel and reaching an agreement before filing any documents in
LEGAL ENVIRONMENT OF BUSINESS
3
court. In addition, ADR can be used as a way to resolve disputes that would otherwise go
unresolved because one side does not have enough resources. This type of ADR is known as "fast
track" because it allows parties to resolve disputes quickly and efficiently without investing
significant time or money into litigation.
There are many reasons why business leaders, managers, and employees should consider
using alternative dispute resolution proactively in their workplace. One reason is that it saves time
and money, as well as the emotional energy spent on fighting a lawsuit or other legal action.
Another reason is that ADR helps build trust within an organization by creating a more
collaborative environment for solving problems together. ADR also helps to protect sensitive
information about the business, its employees and customers, and its products or services. This
can reduce risk for the business by preventing the disclosure of confidential information in court
proceedings. Finally, it allows businesses to make decisions based on facts rather than emotions
or biases that may have been introduced during litigation proceedings.
ADR can be used by businesses of all sizes and all industries. For example, Ford Motor
Company ...