Question

Bob Doe recently purchased a 2009 ford fusion from a used car dealer. on his way home he ran over a curb in his driveway. when he took the car out again he realized the steering wheel vibrating. Bob took the car to his local mechanic who told him the axel was bent and would have to be replaced at 1,200$. the axel was bent when he bought the car. Bob went back to the dealer and demanded them to take the car back. The manager refused claiming there was nothing wrong. Mr. Doe has come to you for advice to resolve this without a lawsuit. He doesn't have loads of money to spend and needs the car fixed quickly.  

what are two methods of ADR you might recommend be used?

briefly explain one important feature of each one

of the two methods which would you advise Mr. Doe to start with and why.

Answer 1

ADR is Alternate Dispute resolution method which are designs keeping in mind the backlog of so many cases pending in courts and their complex procedures and formalities that has to be complied with for filing law suit.

Since Mr. Bob Doe doesn’t have much funds enough for such suit, it is better to approach ADR mechanism wherein he will get the judgement well in time and at less cost and also easy way to approach them.

There are two methods of ADR that is commonly used in such cases–

1. Arbitration method – In this parties decide who shall act as an arbitrator for them mutually when there is no agreement as such in between the parties. The Arbitrator tries to solve the dispute arises between the parties. It is less formal, and the decision of the arbitrator is binding.
2. Negotiation- Negotiation generally take the form of all types of ADR methods, such that mediation and conciliation to arrive at a point of satisfaction between both the parties so that none suffered the loss. No third parties are involved here. This option is given even before filing of dispute. Parties can negotiate with each other to arrive at a decision which is suitable to them.

Therefore, Mr. Bob Doe is advised to start negotiating first to arrive a mutual decision. If the other party is not ready. Then convince him to go for Arbitration, if not decide to appoint one third party to help you both to arrive in a decision like in mediation.