Which statement best describes binding ADR?

• A. It produces a recommendation not enforceable by law.
• B. It is optional and unbinding.
• C. It results in a decision enforceable by law.
• D. It is always subject to court approval.

Answer: (C)

Binding ADR means the outcome is final and legally enforceable, not just a suggestion. In practice this is usually arbitration, where an arbitrator makes a decision that the law treats like a court judgment. The parties are obligated to comply, and courts will enforce the award if needed. This contrasts with non-binding ADR, like mediation, where the result is only a mutual agreement and has no forced effect. It’s not optional or unbinding, and while a court can review or challenge an arbitration award in specific circumstances, the award itself is enforceable by law once issued.