Alternative Dispute Resolution The alternative to suing (or being sued) in court.

When you're hit with a lawsuit, the costs can bemind-boggling-even if you win. That's why more and more smallbusinesses are using alternative dispute resolution (ADR), aconcept that includes mediation, arbitration and other ways ofresolving disputes without resorting to litigation. Both incontracts between businesses or in agreements between employers andemployees, people are consenting ahead of time to submit futuredisputes to ADR.

Excerpted from Start Your Own Business, 2nd edition: The OnlyStart-Up Guide You'll Ever Need