Alternative Dispute Resolution

The alternative to suing (or being sued) in court.
1 min read
Opinions expressed by Entrepreneur contributors are their own.

When you're hit with a lawsuit, the costs can be mind-boggling-even if you win. That's why more and more small businesses are using alternative dispute resolution (ADR), a concept that includes mediation, arbitration and other ways of resolving disputes without resorting to litigation. Both in contracts between businesses or in agreements between employers and employees, people are consenting ahead of time to submit future disputes to ADR.

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

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur