Los Angeles Claims Adjuster Property and Causality Practice Exam

Which of the following refers to resolution methods outside of traditional court proceedings?

1. Litigation

2. Alternative Dispute Resolution (ADR)

3. Legal arbitration

4. Mediation only

The correct answer is: Alternative Dispute Resolution (ADR)

Alternative Dispute Resolution (ADR) encompasses a variety of resolution methods that take place outside of traditional court proceedings. This approach is designed to provide parties with alternative ways to resolve their conflicts, often in a more efficient and cost-effective manner than litigation. ADR includes various processes such as mediation, arbitration, and negotiation. The scope of ADR is broad, allowing for a range of different techniques tailored to the needs of the parties involved. It provides flexibility and can foster collaborative solutions while often preserving relationships between the parties. In contrast, traditional litigation can be adversarial and may result in a more permanent rupture in relationships due to its nature of assigning blame and outcomes dictated by a judge or jury. While legal arbitration and mediation are methods that fall under the umbrella of ADR, identifying ADR specifically encompasses all alternative methods, not just a single approach. Therefore, highlighting ADR recognizes the full spectrum of options available outside of the courtroom setting.