Arizona Adjuster Practice Exam

What is an alternative to civil litigation that disputing parties may utilize?

1. Mediation

2. Arbitration

3. Alternative dispute resolution (ADR)

4. Negotiation

The correct answer is: Alternative dispute resolution (ADR)

An alternative to civil litigation that disputing parties may utilize is alternative dispute resolution (ADR). This term encompasses a variety of methods that are used to resolve conflicts outside of the courtroom, including mediation, arbitration, and negotiation. ADR methods are often preferred because they can be more cost-effective, quicker, and less formal than traditional litigation. While mediation refers specifically to a process where a neutral third party helps facilitate a resolution between the parties, arbitration involves a third party making a binding decision based on the evidence presented. Negotiation, on the other hand, involves direct discussions between the parties to reach an agreement. All these methods fall under the broader umbrella of ADR, making it the correct answer when discussing alternatives to civil litigation. Each of these methods can lead to a resolution without the need for a formal trial, reflecting the primary goal of ADR to provide more resolution options for disputing parties.