Which of the Following Statements Comparing Alternative Dispute Resolution (ADR)with

question 29

Multiple Choice

Which of the following statements comparing alternative dispute resolution (ADR) with litigation is true?

• A) ADR is more expensive than litigation.
• B) ADR is more time-consuming than litigation.
• C) Litigation is public whereas ADR maintains privacy.
• D) Litigation has complete flexibility whereas ADR has limited flexibility.

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Definitions:

Price Takers

Market participants who accept prevailing market prices and do not have the market power to influence those prices.

Competitive Market

A market structure characterized by a large number of firms competing with each other to sell similar or identical goods and services.

Perfect Competition

A market structure with many buyers and sellers, where all firms sell identical products and no single buyer or seller can influence the market price.

Market Price

The current price at which a good or service can be bought or sold in a competitive marketplace.