A more thorough explanation:

Dispute Resolution refers to the various processes used to resolve a dispute between parties. It is an alternative to litigation and can be used to resolve any type of dispute including family, neighborhood, employment, business, housing, personal injury, securities, consumer, and environmental disputes.

Parties can choose to resolve their dispute via Dispute Resolution, or it might be prescribed by the court in early stages of litigation to give parties a chance to resolve their dispute before going to trial.

There are many types of dispute resolution processes, but the three most common types of alternative dispute resolution are:

• Negotiation: The least formal type of ADR. The goal of negotiation is to help parties to come to a consensus on their own, parties can involve a neutral third party into their negotiation to help facilitate an agreement.
• Mediation: The process where a neutral third party (usually a professional mediator) helps disputants to resolve their dispute. Mediation is usually more formal than negotiation but less formal than arbitration.
• Arbitration: One of the most formal types of ADR, even though it is less formal than a traditional trial, arbitration is usually performed by professional arbitrators (one or a panel) acting as ‘judges’ and parties have to follow the rules predetermined in their arbitration agreement.

Dispute resolution has several advantages:

• It is usually cheaper and faster than litigation.
• ADR is less formal and has more flexible rules than litigation.
• In certain cases, parties have greater participation in reaching a solution, as well as more control over the outcome of the dispute.
• Some types of ADR (like mediation and negotiation) preserve an opportunity for the parties to proceed with litigation if they are not able to resolve their dispute via dispute resolution.

For example, if two neighbors are having a dispute over a property line, they can choose to resolve their dispute through negotiation or mediation. They can involve a neutral third party to help them come to an agreement. If they are not able to resolve their dispute through negotiation or mediation, they can proceed with litigation.

Another example is if an employee is having a dispute with their employer over wages. They can choose to resolve their dispute through arbitration. They can agree to follow the rules predetermined in their arbitration agreement and have a professional arbitrator act as a judge. The outcome of the arbitration is usually binding.