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How can ADR help with a business dispute?

On Behalf of | Sep 11, 2020 | Mediation and Arbitration, ADR |

Business disputes can be stressful and costly but can also be an everyday part of doing business. Business law provides tools and resources to guide business owners through disputes that come up and alternative dispute resolution is one option that can help them.

Alternative dispute resolution (ADR) can be a more efficient process for handling business-related disputes and other disputes as well. ADR can save time and money by helping a dispute be resolved more quickly, which can save expense, and with less acrimony. It can also be a more private process. There are primarily two different types of alternative dispute resolution to be familiar with.


Mediation is a collaborative process that involves a third-party neutral, or mediator, who works with the parties to the dispute to reach an outcome that is mutually agreeable. The mediator will work back and forth with the parties to reach a settlement agreement. The mediation process is typically non-binding.


Arbitration involves a third party hearing both sides of the dispute and rendering a decision. Arbitration is more like an informal trial and the arbiter may be a former judge as an example. Usually the parties decide in their arbitration agreement if the arbitration process will be binding.

There are additional types of alternative dispute resolution as well. ADR can help resolve the dispute in a smoother, and more peaceful, manner that can be pleasing to all parties involved. For that reason, alternative dispute resolution is a valuable option to consider and be familiar with for businesses facing a variety of different types of disputes.