Certified Manager of Community Associations (CMCA) 2025 – 400 Free Practice Questions to Pass the Exam

Alternative Dispute Resolution (ADR) encompasses a variety of methods used to resolve disputes outside of the traditional court system. The best description involves a process that includes a trained, uninvolved third party who assists in the resolution of the conflict. This third-party mediator or arbitrator helps facilitate discussions, encourages compromise, and guides the parties toward a mutually agreeable solution.

This method is often favored due to its ability to save time and reduce costs compared to litigation, while also fostering a collaborative rather than adversarial environment. In contrast, the other options do not accurately capture the essence of ADR. For instance, settling disputes in court refers to the litigation process, which is fundamentally different from ADR. Formal negotiation among all parties, while potentially part of ADR, does not encompass the role of a trained third party, which is central to the correct choice. Lastly, a binding agreement without third-party involvement suggests a type of settlement, but not one that characterizes the intervention of a mediator or arbitrator, which is key to ADR.