Running head: ALTERNATIVE DISPUTE RESOLUTION PAPER

Alternative Dispute Resolution Paper

Steven Schear
HRM/531
August 8, 2016
Susan Purvin

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Alternative Dispute Resolution

Alternative dispute resolution (ADR) is a legal means of settling a dispute without
solving it in a courtroom. A few method are early neutral evaluation, negotiation, conciliation,
mediation, and arbitration. An excellent example to demonstrate how alternative disputes
resolutions could be utilized is identity theft. The theft of a persons identity is something that
should be able to be resolved without the use of litigation proceedings. The method that will be
discussed will be the arbitration process. A person experience with PayPal and bank account
information stolen through this organization is an excellent example. PayPal would rather not
solve disputes between the company and its customers in a legal court setting, but through an
agreement of arbitrate. It identity theft is solved through the litigation process it would be
extremely pricy for the victims. This is why PayPal should continue to resolve identity theft
through the arbitration process to make sure its customers are protected.
Identity Theft Solved Through Litigation Process
It is important to know what the litigation process is and how it can affect the costs of a dispute
between a corporation and customers. The litigation process is usually connected to civil
lawsuits, in which one party sues another. But in the general sense, the same litigation process
works in criminal cases, in which laws are broken. When identity theft if an issue some cases
could result in a courtroom appearance. According to Identity Theft Facts.com (2012), The
monetary costs of identity theft can be quit hefty. In fact, victims of identity theft lose an average
of $2,000 to 15,000 in wages trying to deal with their cases. This is because victims spend
between a day and nine months trying to repair the financial damage caused by identity thieves,

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and some even spend up to a year trying to deal with their cases. On average, victims spend
between $850 to $1400 in expenses related to their cases, which includes paperwork and any
other legal fees (para 7). This example shows how costly the damage can be and some of these
posts could be related to unnecessary court costs and how by solving problems through
alternative dispute resolution methods would be the preferred way to deal with disputes.
Identity Theft Solved Through Alternative Dispute Resolution
Because of a personal experience with a $2,000 debt owed to PayPal the corporation due
to identity theft alternative dispute resolution solved the issue. PayPal instruct determined to
contact the bank the bank about the account being compromised. If it's a matter of a payment that
is authorized that the buyer is disputing because of non-receipt or because it's not as described,
stopping payment on the transaction with your bank will preempt the dispute process. However,
after talking to PayPal and looking at the website this was the discovery. According to PayPal
(2016), Agreement to Arbitrate. You and PayPal each agree that any and all disputes or claims
that have arisen or may arise between you and PayPal, including without limitation federal and
state statutory claims, common law claims, and those based in contract, tort, fraud,
misrepresentation or any other legal theory, shall be resolved exclusively through final and
binding arbitration, rather than in court, except that you may assert claims in small claims court,
if your claims qualify and so long as the matter remains in such court and advances only on an
individual (non-class, non-representative) basis. This Agreement to Arbitrate is intended to be
broadly interpreted. The Federal Arbitration Act governs the interpretation and enforcement of
this Agreement to Arbitrate (14.3 Agreement to Arbitrate).
Conclusion

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References
PayPal. (2016). Disputes with PayPal. Retrieved from https://www.
paypal.com/us/webapps/mpp/ua/useragreement-full#14