Alternative Dispute Resolutions

Running head: ALTERNATIVE DISPUTE RESOLUTIONS

Marlo A Colacchio

BUS 415

Joel A. Stiner

October 31, 2007

Alternative Dispute Resolution

Alternative Dispute Resolution (ADR) is a way of solving a problem using different methods other then litigation. The time for a court room and legal defense is a costly process that can take years before reaching a decision. Certain steps or methods should be considered before taking a case to trail. Arbitration is the most common method of ADR, other methods are mediation, conciliation, mini trial, fact-finding, and judicial referee.

Mediation comes into play when a negotiation does not come to a fair conclusion. A neutral third party is brought in to listen to each side of the conflict and set out new and old ideas that should be considered. Negotiation and Mediation is very similar, the only difference is coach is brought in to give pointers and exercises that could help resolve a conflict. Usually Mediation is welcomed, members understand they could not resolve the conflict themselves and everyone is ready to participate in getting the conflict solved. (Conflict and Cohesion, 2001) "Conciliation is a form of mediation in which the parties choose an interested third party to act as the mediator." (Cheeseman, 2004)

Arbitration is the most common method of ADR "Arbitrators are usually selected from members of the American Arbitration Association (AAA) or another arbitration association (2004) Arbitration is not litigation or a trial court. This method "chooses an impartial third party to hear and decide the dispute (2004) Arbitration is considered after one has attempted to resolve a conflict by negotiation, mediation and have tried other conflict resolutions but have not been successful. This is where the team admits defeat, and argues their case to the Arbitrator (Judge). Before the final decision is made both teams are usually in agreement to follow the arbitrator's award. The final decision is made, and good or bad the arbitrator's final saying is set in stone and the conflict is resolved, unless the two parties do not agree then an appeal in the courts could be a possible outcome. "Labor union agreements, franchise agreements, leases, and other commercial contracts often contain arbitration clauses that require disputes arising out of the contract to be submitted to arbitration." (2004) Arbitration has proven to be a successful way to resolve a problem. Adopted by many states is the "Federal Arbitration Act, this act promotes the arbitration of disputes at the state level."

"A mini trial is a session, usually lasting a day or less, in which the lawyers for each side present cases to representatives of each party who have authority to settle the dispute. In many cases, the parties hire a neutral person (e.g., a retired judge) to preside over the mini trial. Following the presentations, the parties meet to try to negotiate a settlement.

The Entertainment Industry, an upcoming trend in American History. "I work for an Indian tribe who owns a luxurious resort and casino located in the foothills of Yosemite, Ca. Located in the resort are restaurants, bars, hotel and gamming. A report came to my desk where ADR was going to be required. It was among an employee and supervisor. A Food and Beverage manager accused a bartender of not accounting for all sales of liquor. Supervisors offence was the amount of liquor on hand did not match the records on amount sold. Human resources became involved immediately where a meeting was scheduled, and everyone involved was to attend. This is where the bartender was told he had signed a contract with an arbitration clause, which requires disputes arising must be submitted to arbitration. The bartender