Which method is a part of alternative dispute resolution?

Alternative dispute resolution (ADR) encompasses various strategies for resolving disputes outside of traditional court litigation. One of the primary methods that falls under this umbrella is arbitration. In arbitration, both parties agree to present their case to a neutral third party, known as an arbitrator, who then makes a binding decision. This method is typically less formal than court proceedings and can be more cost-effective and time-efficient, which are significant advantages in the context of resolving conflicts.

The primary focus of ADR, including arbitration, is to facilitate a resolution without the need for court involvement, allowing for more flexibility and often a less adversarial approach than litigation. This distinctive feature clearly sets arbitration apart from the traditional court system, which is what makes it a key component of ADR.

In contrast, other options relate to conventional methods of conflict resolution. Litigation involves the courts and is not considered part of ADR as it follows a formal judicial process. Negotiation, while a form of settling disputes that can be informal, does not have the same binding authority as arbitration unless all parties reach a consensus. Direct appeals to regulators involve formal procedures associated with regulatory bodies and thus sit outside the ADR framework as well. Therefore, arbitration stands out distinctly as a recognized form of alternative dispute resolution.