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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 (A)</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 (A)</p> Signup and view all the answers

Flashcards

Lack of court protection in ADR

In ADR, decisions aren't legally binding like court rulings. This can make enforcing agreements difficult.

Insufficient Information in ADR

Without enough info, reaching a fair compromise is tough. Parties might make bad decisions due to limited knowledge.

Double Costs in ADR

Using ADR and then going to court can be pricier than just starting in court. You might pay twice for the same issue.

Uncooperative Parties in ADR

If parties are stubborn or uncooperative, ADR can be ineffective. It requires a willingness to compromise.

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Danger of Prescription in ADR

Legal claims can expire if not acted upon within certain timeframes. This is a risk when ADR delays resolution.

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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.