Alternative dispute resolution adr encompasses many different methods of resolving disputes outside of the judicial process some adr methods vest power to resolve the dispute in a neutral third party while other strategies vest that power in the parties themselves figure 41 alternative dispute resolution continuum the most common methods of adr are negotiation mediation and arbitration . Alternative dispute resolution basics for those in business in an attempt to control litigation costs many companies are looking to employ alternative dispute resolution mechanisms commonly referred to as adr to avoid the courthouse two of the most commonly used adr mechanisms are mediation and arbitration. Alternative dispute resolution adr is a procedure for settling a dispute by means other than litigation such as arbitration mediation or minitrial 1 although arbitration and mediation are both considered forms of alternative dispute resolution arbitration and mediation are fundamentally different. Despite the fact that no single definition is fit enough to elucidate the meaning of dispute resolution bobukeeva 2007 explains that it is much easier to understand definitions related to dispute resolution by first understanding the nature of disputes involved to this he lists a number of disputes which normally occur in business environments these include