Paralegal Advanced Competency Exam (PACE) Practice Exam

What is the primary benefit of Alternative Dispute Resolution (ADR)?

1. It is more formal than court litigation

2. It allows for public scrutiny of disputes

3. It is typically faster and less expensive than traditional litigation

4. It ensures a legal precedent is set

The correct answer is: It is typically faster and less expensive than traditional litigation

The primary benefit of Alternative Dispute Resolution (ADR) lies in its ability to provide a more efficient and cost-effective means of resolving disputes compared to traditional litigation. ADR methods, such as mediation and arbitration, often require less time than court proceedings, which can be protracted due to various factors, including court schedules and lengthy trial processes. This efficiency translates into reduced legal fees and associated costs for the parties involved, making it an attractive option for individuals and businesses. In contrast to the options that highlight formal processes or the establishment of legal precedents, ADR typically fosters a more informal environment aimed at negotiation and mutually agreeable solutions. This flexibility not only contributes to faster resolutions but also decreases the financial burden on the parties compared to the often extensive expenses associated with litigation in the court system.