What is 'alternative dispute resolution (ADR)'?

Alternative dispute resolution (ADR) refers to methods of resolving disputes outside the formal court system. This includes processes like mediation and arbitration, where parties can negotiate with or without the help of a neutral third party to reach a resolution. The aim of ADR is to provide a more efficient, cost-effective, and less adversarial means of resolving conflicts compared to traditional litigation.

In the context of this question, mediation is a key example of ADR. During mediation, a neutral mediator facilitates discussions between the parties to help them arrive at a mutually acceptable solution. This method not only conserves resources but also allows the parties to have more control over the outcome compared to a trial where a judge or jury makes the final decision.

The other options do not accurately represent the nature of ADR. For instance, guaranteeing court outcomes implies a level of judicial certainty that ADR processes do not provide. Formal litigation processes are distinctly different from ADR, as they involve strict procedural rules and generally take place in court. Escalating disputes to higher courts refers to traditional litigation pathways rather than alternative methods for resolving conflicts.