We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Advantages and disadvantages of alternative dispute resolution over litigation in international business - Assignment Example

Comments (0)
Summary
Alternative Dispute Resolution is a general term used to describe different methods employed to resolve arising disputes instead of filling for litigation.The fundamental principle of ADR is that disagreeing parties should always try to avoid litigation…
Download full paper
GRAB THE BEST PAPER
Advantages and disadvantages of alternative dispute resolution over litigation in international business
Read TextPreview

Extract of sample
Advantages and disadvantages of alternative dispute resolution over litigation in international business

Download file to see previous pages... According to the American Bar Association, ADR is an “an array of non-binding and binding dispute resolution methods that entail the application of third-party neutrals to help the parties in contract controversies through a systematic settlement process” (ABA, 1999).2 Similarly the United States Code in section 571 explains that ADR comprises of the following aspects, conciliation, facilitation, mediation, fact-finding, mini-trials, arbitration and ombudsmen, the above aspects can be combined in ADR. As noted by Shamir ADR is applied in different civil law policy situations, and not just in global Institutionalized in a lot of court systems and justice systems around the world.3 Though ADR is accepted by globally, it has some disadvantages, thus this paper aims at examining the advantages of ADR over litigation. For clarity of the issue, the paper will begin by giving an overview of the concept of ADR. Use and Cost of litigation According to Nolan-Haley litigation has been mostly used as a traditional way of resolving disputes, whether they are local or international business transactions.4 Prior to the introduction and development of ADR process such as arbitration, the only formal method or resolving disputes between two or more parties was litigation. In the same way equity was introduced in the English legal justice system which came in stages to control the ruthlessness and inflexibility of the common law, is the way ADR was introduced to control litigation. Litigation is a costly process for businesses, particularly in cases that involve significant issues such as patent, infringement, breach of important business contracts, antitrust laws and securities. In these cases, a lot of money could be lost by a company. For example Real Networks Inc, a public traded company in its 2004 annual press report indicated that it has used about 15,000,000 in only one antitrust litigation case.5 This goes on to show how costly litigation is, and this aspect of court cases is well known to companies. It is because of such cases that ADR methods have become more popular as a way of resolving disputes. Indeed, records from the American Arbitration Association indicated that in 2005 alone, the number of cases forward to the body was 142,000, an increase from 159,000 recorded in 2004. However, the most common ADR method used to resolve disputes is arbitration, which in the past ten years has been highly used by various companies in resolving their disputes. Shamir explains that, the high costs of litigations are caused by the long duration related with litigation. In many cases, litigation goes on for years before a conclusion is made.6 This occurs owing to the slow system of the courts and judges in completing cases and the many adjournments made. Therefore as the cases drags on, the costs also keeps increasing. In other cases, the net expenses of litigation can be impacted by other factors like the sum of money under dispute, the nature of the legal representative , the nature of the dispute (if its local or international) and the length of case. This means that the total cost of the litigation can not be predicated correctly and this makes budgeting for such a litigation to be a tough call. A good example is a case that involved AMOCO CATs7, which ended up as a high profile case. The amount of money spend on that case from the time the case started to the end of the case was 12 million pounds. Again, in another case of Amoco V. British American Offshore, the legal expenses of that case stood ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
INTERNATIONAL ALTERNATIVE DISPUTE RESOLUTION
However, this evolved in steps – first, the arbitration clause began to be considered as separate from the underlying contract; then, even though it was separate, it was held that it did not survive the end of the contract; then it was held that it would survive the end of a contract, and would survive if a contract was voidable, but no if a contract was void.
15 Pages(3750 words)Coursework
Advantages and Disadvantages of Multiculturalism in UK
This paper analyses the advantages and disadvantages multiculturalism brings to UK people. Some people argue that multiculturalism should be encouraged, especially in this globalized world, whereas others are of the view that it should not be encouraged because of the possibility of repetition of 9/11 like incidents.
3 Pages(750 words)Assignment
Quantity Surveyors Role in Construction Dispute Resolution
The situation gets even more critical when the parties involved are international. This problem of the modern day requires a modified approach. For which the construction industry has resorted to Alternative Dispute Resolution (ADR) Techniques. ADR is a new approach which was brought forward in 1980-1990s.
8 Pages(2000 words)Assignment
Advantages and disadvantages of E-learning
In the 1990s, rapid technological advances and internet usage led to the development of distance learning or e-learning. This form of learning differs from traditional learning methods because it uses telecommunication facilities and the internet to facilitate the courses.
3 Pages(750 words)Assignment
The advantages and disadvantages of antibiotics
Antibiotic or antibacterial agents cause inhibition in bacterial growth or destroy bacteria (Media News Today, 2009). It blocks the vital process in bacteria, thereby stopping them from multiplying, and this encourages the body’s natural immune system to fight the disease (Garbutt, 2012).
6 Pages(1500 words)Assignment
Alternative Dispute Resolution( ADR)Clause
In the case where a dispute is among two members of the team then the duo can resort to mediation. Any issue that arises within a team needs to be sorted either with mediation or using negotiations. In the case that neither of the two works out a solution
2 Pages(500 words)Assignment
Art of Negotiation - advantages and disadvantages
usiness negotiations structural and advantageous for the both parties, it is necessary to set clear goals, to achieve planned objectives, to provide convincing arguments. It is not allowed to be stubborn and deaf to the opinion of a partner: orders can’t be given during
1 Pages(250 words)Assignment
Advantages and Disadvantages of Business Regulations
Most of these regulations range from health to security besides varying significantly among states though crystallized by the international ones. In most
2 Pages(500 words)Assignment
Advantages and Disadvantages of Making and Buying
Both the outside resources and internal resources are very important for the development of a new system in an organization particularly when the combination that takes place is synergistic or turns out to be great. Internal resources include IT department analysts as well as other expert individuals.
2 Pages(500 words)Assignment
Alternative Dispute Resolution Assignment
Arbitration and mediation are among the most common types of alternative dispute resolution techniques (Redfern, Nigel and Martin 54). Courts never dispute or overturn the
5 Pages(1250 words)Assignment
Let us find you another Assignment on topic Advantages and disadvantages of alternative dispute resolution over litigation in international business for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us