Which statement describes non-binding ADR?

• A. It results in a decision enforceable by law.
• B. It produces a recommendation or agreement that is not legally enforceable unless incorporated into contract or court order.
• C. It automatically becomes a court order.
• D. It remains entirely voluntary with no consequences.

Answer: (B)

Non-binding ADR means the outcome isn’t enforceable by law on its own. In processes like mediation, the parties may reach a recommendation or a settlement draft, but it only becomes legally binding if they sign a contract or the court orders it accordingly. This is why the description that says it produces a recommendation or agreement that isn’t legally enforceable unless incorporated into a contract or court order best fits non-binding ADR. The other ideas don’t fit because a binding result would be enforceable by law, mediation doesn’t automatically become a court order, and while participation is voluntary, reaching and formalizing a settlement can create enforceable obligations.