ACCA Applied Skills · Corporate and Business Law (Global) · Alternative dispute resolution mechanisms
Eta Ltd is owed a large sum and wants a precedent-setting, publicly reasoned decision from a judge, with a right of appeal if it loses. Which method best meets these needs?
Court litigation best meets these needs. It gives a public, reasoned judgment from a judge that can set precedent and usually allows an appeal, whereas mediation, negotiation and conciliation are private and produce no binding judgment.
- AMediation
- BCourt litigationCorrect
- CNegotiation
- DConciliation
Explanation
Court litigation produces public reasoned judgments that can create precedent and generally carries appeal rights. The ADR methods listed are private and non-precedent-setting, and mediation, negotiation and conciliation result in no judgment.
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