Business Dispute Resolution through Alternative Dispute Resolution (ADR): A Civil Law Analysis of the Effectiveness of Non-Litigation Mechanisms

Ani Purwati, Geeofani Milthree Saragih

Abstract


This study examines business dispute resolution through Alternative Dispute Resolution (ADR) mechanisms by analyzing their effectiveness from a civil law perspective. The primary objective of this research is to assess how non-litigation dispute resolution mechanisms—such as negotiation, mediation, and arbitration—function as instruments for achieving legal certainty, efficiency, and substantive justice in business disputes. Employing a normative juridical method with a conceptual and statutory approach, this study analyzes civil law doctrines, statutory regulations governing ADR, and scholarly interpretations related to business dispute resolution. The analysis focuses on the underlying assumptions of party autonomy, contractual freedom, procedural flexibility, and the role of ADR in reducing the adversarial nature of litigation. The findings reveal that ADR mechanisms offer significant advantages over litigation in business contexts, particularly in terms of time efficiency, cost effectiveness, confidentiality, and the preservation of commercial relationships. However, the study also identifies structural and normative challenges, including unequal bargaining power, limited enforceability of certain ADR outcomes, and varying levels of institutional support. This study argues that strengthening the normative framework and institutional integration of ADR within civil law systems is essential to enhance its effectiveness as a primary mechanism for resolving business disputes. The novelty of this research lies in its comprehensive civil law analysis that positions ADR not merely as an alternative to litigation, but as an integral component of modern business law aimed at harmonizing efficiency, legal certainty, and substantive justice in commercial dispute resolution.

Keywords


Alternative Dispute Resolution; Business Disputes; Civil Law; Non-Litigation Mechanisms; Legal Effectiveness

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DOI: http://dx.doi.org/10.30659/akta.v13i2.51069

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