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Disadvantages of Alternative Dispute Resolution

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Disadvantages of Alternative Dispute Resolution

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Questions and Answers

What is a potential drawback of ADR related to the legal framework?

Increased court involvement

Lack of court protection (correct)

Guaranteed representation by legal counsel

Automatic enforcement of awards

Which disadvantage of ADR is associated with limited resources for decision-making?

High levels of public scrutiny

Mandatory legal precedents

Lack of access to sufficient information (correct)

Excessive legal fees

What risk may arise from the nature of the parties involved in ADR?

Equal bargaining power

Standardized resolutions

Uncooperative parties (correct)

Guaranteed cooperation

What financial risk is associated with the ADR process?

<p>Risk of incurring double costs</p> Signup and view all the answers

Which aspect related to time-sensitive legal claims can be a disadvantage of ADR?

<p>Danger of Prescription</p> Signup and view all the answers

Study Notes

Disadvantages of ADR

Lack of court protection: ADR processes often lack the formal protections and safeguards of court proceedings.
Lack of access to sufficient information: Parties in ADR may not have the same level of access to information as they would in a court setting.
Risk of incurring double costs: The process of pursuing an ADR solution alongside the possibility of it not working or needing to be followed up with court proceedings can lead to costly overlapping expenses.
Uncooperative parties: ADR relies on the cooperation of all parties involved; if either party is unwilling to engage or negotiate seriously, the process can fail.
Danger of Prescription: In some jurisdictions or specific cases, a period of time might expire before a claim can be made (Prescription). ADR processes might not be completed within these parameters and consequently affect the claimant.

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Description

This quiz focuses on the disadvantages associated with Alternative Dispute Resolution (ADR). It covers key points such as lack of court protection, limited access to information, potentially double costs, the necessity of cooperation among parties, and the risks of prescription in legal claims.