Understanding ADR processes is important for three reasons. First, as part of a business
negotiation you must decide whether to include discussion of ADR in your contract
negotiations. To understand what you are negotiating, you should understand the basics
of the two key ADR processes, mediation and arbitration.
The second reason why an understanding of ADR processes is important is that you
might become a participant in these processes if a dispute arises over performance of a
contract. If you have agreed to arbitration, you will participate in the selection of the
arbitrator, you must decide whether you need an attorney, you should understand whether
you can appeal the arbitrator’s decision, and so on.
Third, in the course of your business and personal life you will often play the role of a
third party as you resolve work disputes or family disputes. At a minimum, you should
be able to make an informed decision about whether it is better to act as an arbitrator or
whether a mediator role makes more sense.
