CIPS Commercial Contracting (L4M3) Practice Test 2025 - Free Practice Questions and Study Guide

Alternative Dispute Resolution (ADR) encompasses various methods used to resolve disputes outside of the traditional court system. The correct choice emphasizes the process of escalating issues to higher levels of authority, which can include mediation, arbitration, or other forms of discussion that aim to find a resolution without resorting to litigation. This approach is beneficial as it can save time, costs, and preserve relationships between parties involved.

Escalation to higher authority allows for resolution through negotiation and dialog before the matter potentially reaches court. This is particularly important in commercial contracting, where preserving business relationships can be essential.

The other options focus on processes that do not align with the principles of ADR. For example, court proceedings and methods involving court action directly conflict with the intent of ADR, which seeks to resolve disputes without the formalities and adversarial nature of the courts. Similarly, majority voting mechanisms do not constitute ADR, as they imply a decision-making process rather than a dispute resolution method.