Alternative dispute resolution (ADR) refers to dispute resolution processes and techniques outside the court room. Despite historic resistance to ADR by both parties and courts, ADR has gained acceptance among both the general public and the legal profession in recent years. In fact, some courts now require some parties to resort to ADR of some type, usually mediation, before permitting the parties' cases to be tried. The rising popularity of ADR can be explained by the increasing caseload of traditional courts, the perception that ADR imposes fewer costs than litigation, a preference for confidentiality, and the desire of some parties to have greater control over the selection of the individual or individuals who will decide their dispute.

ADR is generally classified into at least three subtypes: negotiation, mediation, and arbitration.

• In negotiation, participation is voluntary and there is no third party who facilitates the resolution process or imposes a resolution.
   

• In mediation, there is a third party, a mediator, who facilitates the resolution process (and may even suggest a resolution, typically known as a "mediator's proposal," but does not impose a resolution on the parties.
   

• In arbitration, participation is typically voluntary, and there is a third party who, as a private judge, imposes a resolution. Arbitrations often occur because parties to contracts agree that any future dispute concerning the agreement will be resolved by arbitration. In recent years, the enforceability of arbitration clauses, particularly in the context of consumer agreements (e.g., credit card agreements), has drawn scrutiny from courts. Although parties may appeal arbitration outcomes to courts, such appeals face an exacting standard of review. http://en.wikipedia.org/wiki/Alternative_dispute_resolution