Choice Of Alternative Dispute Resolution

Since China has adopted the reform of the economic system over the years, the social economy develops rapidly. With the prosperity of the economy, the number of civil disputes arises dramatically at the same time. Like many developed countries, China has also experienced explosive growth in civil litigation stage in the process of development There is no doubt that the rapid development of the Civil action would lead to the reform of the civil justice system. In the past, the Civil Justice Reform in China is mainly confined to the reform of trial methods and the implementation of the procedures, although with some success, new pressures begin to emerge with the accelerated reform of civil trials. This is our judicial resources and trial ability. Although there is a significant upgrade after the reforms, the civil action still feels powerless facing the explosive growth trend. After all, the contradiction between the limited judicial resources in a certain period of time and the unlimited litigation growth in quite a long period of time can not be completely resolved. This means that we must find a new system and new ways to ease the tensions of the current judicial resources. Alternative dispute resolution mechanism is one of the ways which is able to alleviate the tension of our suit effectively.Alternative dispute resolution mechanism comes along with the reform of civil justice. Its efficient facilitation and litigation economy are both much better than the civil litigation system. In abroad, alternative dispute resolution mechanisms are widely used in social civil and commercial disputes in various fields, especially in the dispute resolution process. When considering the proceedings and economic costs, alternative dispute resolution can be made a fully use. This article based on such purposes and use Western economics "rational economic man" as the fundamental assumptions, using the knowledge and principles of economics to analyze the economic rationale of alternative dispute resolution mechanism for the generation and development, and also analyze the widely use of reason to make optimistic forecasts on the prospects for the development of alternative dispute resolution mechanism. This paper includes four parts:The first part is an overview of the alternative dispute resolution mechanism and introduces the value of alternative dispute resolution mechanisms. The second part examines the relevant situation of the alternative dispute resolution mechanism in the United Kingdom, the United States and Germany,. These states represent the current development of the major countries of the world and they have accumulated wealth legislative and judicial experience, which has important meanings for the improvement of the alternative dispute resolution system.The third part is an economic analysis of our traditional civil dispute resolution mechanisms. If made our traditional dispute resolution mechanisms to be the virtual market, the market as a whole to be examined from an economic point of view, it is not difficult to find our dispute resolution market exists in the monopoly of the Court. The monopoly status of the court proceedings led to the dispute resolution high litigation price mechanism of market and social welfare loss. Further contrast to the Dispute Settlement mechanism for the costs and benefits can be learned that the traditional litigation is also non-economic, not directly proportional to its costs and benefits. This is exactly the alternative dispute resolution mechanism to be the root cause of the emergence and development. Thus the further improvement of our traditional civil dispute resolution mechanisms should be imperative.The fourth part is the choice analysis of alternative dispute resolution mechanism. With the imbalance of market supply and demand, dispute resolution parties have price sensitivity. As a rational economic man, one always looking for the ways to get maximum benefits with minimal cost, and thus the choice of alternative dispute resolution mechanism has become inevitable. This choice is not only conducive to dispute resolution products to consumers, but also help the entire dispute resolution market to reach equilibrium. In order to resolve disputes, product market provides a diverse selection to give full play to the effectiveness of market mechanisms. We should also learn from foreign advanced experience with the national situation and to build a wide range of alternatives from the legislative and judicial dispute resolution mechanism.