Alternative dispute resolution (ADR) approaches involving negotiation, mediation, and arbitration. These include non-binding consequences, difficulties in enforcing decisions, power imbalances, lack of legal precedent and control over important legal principles.
ADR offers advantages such as speed, cost-effectiveness, confidentiality, customization, preservation of relationships, expertise, reduced litigation and efficiency in international disputes. However, for ADR to realize its full potential, issues of enforceability, fairness and proper regulation are critical.