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Alternative dispute resolution
means settling or trying to settle legal disputes without litigation. Common
forms of alternative dispute resolution include negotiation, mediation and
arbitration. These range from informal to formal to the extent of being
trial-like. The common denominator of alternative dispute resolution methods is
that they are typically faster and cheaper than full-on litigation and that
they allow the parties to control the process more so than in litigation.
Because of the efficiency of
alternative dispute resolution methods, many contracts require one or more ADR
methods be used to settle disputes. For example, a contract may require that
the parties go to arbitration administered under the auspices of the American
Arbitration Association rather than going to standard civil court.