Which of the following describes Alternative Dispute Resolution (ADR)?

Study for the PEO PPE Exam. Use multiple choice questions with hints and explanations. Prepare thoroughly for your exam!

Alternative Dispute Resolution (ADR) refers to a range of processes designed to resolve conflicts without resorting to formal court proceedings. The core features of ADR include mediation and arbitration, where intermediaries like mediators or arbiters facilitate the discussion and resolution of disputes.

This approach is often preferred because it tends to be more efficient and cost-effective than traditional litigation, which can be lengthy and expensive. Furthermore, ADR processes tend to be less formal than court procedures, allowing for a more flexible setting that can lead to mutually agreeable outcomes. This method fosters communication between the parties involved, prioritizing collaboration over adversarial tactics typical in the courtroom environment.

In distinguishing ADR from other forms of dispute resolution, it's clear that options that suggest mandatory litigation, formal court procedures, or jury involvement are incongruent with the essence of ADR, which is fundamentally about providing an alternative approach to resolving disputes outside the conventional courtroom context.

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