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Negotiation
Parties communicate with each other and make their own decisions.
They will sign the deal as a contract and it is binding.
Where the two parties find a neutral third party to hear both arguments
and make a final and binding decision.
● A process where a neutral third party hears both sides and makes a
binding decision
● Usually ordered by legislation but the arbitrator is usually agreed
upon by both parties
● Arbitrators are usually experts in the particular field
● Decisions are rarely reviewed in court and are made quicker with a
winner and a loser
Advantages and Disadvantages of ADR
Saves time and money, informal, private, gives both parties more control