List and explain two methods of alternative dispute resolution (ADR) and potential advantages and disadvantages of using ADR.

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Alternative dispute resolution (ADR) is a set of techniques that can be used to bring about resolutions to conflicts without having to resort to costly court battles. Two commonly used methods include arbitration and mediation; both of which involve the use of third-party neutrals in order to come up with appropriate solutions.

Arbitration involves two sides presenting their respective cases before an unbiased panel who then renders a decision based on applicable laws & regulations. This method is often quicker than litigation plus any rulings rendered are usually binding in nature thus reducing chances for further disputes down the road. On the other hand, Mediation calls upon mediators to act as facilitators between involved parties so as encourage them reach agreements through mutual dialogue.

The main advantages of using ADR would be faster settlements, lower costs & greater confidentiality compared with traditional litigation although certain issues such as enforcement/appeal procedures etc., may vary depending on which particular technique is employed. Ultimately though by utilizing such approaches where possible organizations should have no problem managing their legal affairs more effectively going forward.