Question

Which of the following is not an advantage of using ADR?

• A. It always results in a binding decision.
• B. It is often less expensive than court proceedings.
• C. It is generally faster than litigation.
• D. It offers more confidentiality than traditional court cases.

Hint:

ADR methods like mediation and conciliation depend on party consent; only arbitration results in a binding award.

Answer 1

The Correct Option is A

Step 1: Understanding ADR.
Alternative Dispute Resolution (ADR) includes arbitration, mediation, conciliation, and negotiation methods that aim to resolve disputes outside courts.
Step 2: Identifying non-advantage.
ADR processes like mediation and conciliation are voluntary and non-binding unless parties agree to make them binding. Therefore, saying ADR "always results in a binding decision" is incorrect.
Step 3: Conclusion.
ADR offers speed, cost-effectiveness, and confidentiality, but it does not always guarantee a binding outcome.