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Alternative dispute resolution (ADR) allows parties the ability to design their own dispute resolution process, and provides them with the flexibility to customize the process to their particular circumstances.
The most frequently cited advantages of arbitration are:
- Speed with which disputes are resolved as compared to court litigation
- Cost savings
- Input and control in selecting an arbitrator with a background and expertise relevant to the dispute
- Informal procedures
Under the AAA's Rules, the procedure is relatively simple:
- Courtroom rules of evidence are not strictly applicable
- There is no requirement for transcripts of the proceedings
Though there may be no formal discovery, the AAA's various rules allow the arbitrator to require production of relevant information and documents. The AAA's rules are also flexible and may be varied by mutual agreement of the parties. Finally, arbitration awards are final and binding and are enforceable in court. Court intervention in the arbitration process is very limited by state and federal laws, and enforcement is facilitated by those same laws.