Which statement best distinguishes arbitration from broader ADR?

Which statement best distinguishes arbitration from broader ADR?

• A. Arbitration results in a binding decision or a non-binding advisory decision, while ADR is a broader term for resolving disputes with neutral help.
• B. ADR always involves a court trial, while arbitration does not.
• C. Arbitration is always non-binding, while ADR is always binding.
• D. ADR requires a contract to be signed by a lawyer only.

Answer: (A)

ADR is any approach to resolving disputes with the help of a neutral party without going to court. Arbitration is one specific method inside ADR where the neutral (the arbitrator) hears the dispute and issues a decision. The important distinction is that arbitration produces a decision, which can be binding (enforceable in court) or non-binding if the parties agree to that outcome. Other ADR methods, like mediation or negotiation, aim to help the parties reach an agreement themselves and may not result in a binding decision. So this choice is best because it correctly frames arbitration as a subset of ADR and highlights that arbitration yields a decision, while ADR as a whole covers other processes that might not produce a binding decision. The other statements are inaccurate: ADR does not always involve a court trial; arbitration is not always non-binding; and ADR does not require a contract signed only by a lawyer.

ADR is any approach to resolving disputes with the help of a neutral party without going to court. Arbitration is one specific method inside ADR where the neutral (the arbitrator) hears the dispute and issues a decision. The important distinction is that arbitration produces a decision, which can be binding (enforceable in court) or non-binding if the parties agree to that outcome. Other ADR methods, like mediation or negotiation, aim to help the parties reach an agreement themselves and may not result in a binding decision.

So this choice is best because it correctly frames arbitration as a subset of ADR and highlights that arbitration yields a decision, while ADR as a whole covers other processes that might not produce a binding decision. The other statements are inaccurate: ADR does not always involve a court trial; arbitration is not always non-binding; and ADR does not require a contract signed only by a lawyer.