Question 1

What are the common uses of arbitration?

Accepted Answer

Arbitration is frequently used to resolve grievances under collective bargaining agreements. It is so frequently used in these cases that it is sometimes identified primarily as a means for resolving labor disputes. Furthermore, it is not used only in traditional labor disputes; we are increasingly seeing it used in disputes over athletes' salaries.
However, arbitration is also used to resolve a much broader range of issues: insurance and uninsured motorist claims, construction disputes, securities, real estate, intellectual property, and other commercial disputes. For example, many consumer complaints are now being handled through arbitration sponsored by Better Business Bureaus (BBBs) in more than 100 cities.
Another area that is seeing an increasing use of arbitration is technology disputes. In 2003, the American Arbitration Association (AAA) handled technology-related claims that totaled more than $1 billion.

Question 2

Which of the following is a problem associated with arbitration?

Accepted Answer

A)  The arbitrators are chosen based on the demographics of the disputants. 
B)  Allegations of race, sex, and age discrimination cannot be annexed to arbitration. 
C)  Arbitration allows industries to hide its disputes from the public. 
D)  Disputes involving intellectual property rights cannot be resolved through arbitration. 
A)  The arbitrators are chosen based on the demographics of the disputants. 
B)  Allegations of race, sex, and age discrimination cannot be annexed to arbitration. 
C)  Arbitration allows industries to hide its disputes from the public. 
D)  Disputes involving intellectual property rights cannot be resolved through arbitration. C

Question 3

Satirn, Inc. is facing a dispute from one of its competitors. Satirn wants to keep the proceedings confidential. It wants to obtain a binding judgment as it believes that it has a strong case. Which of the following methods of dispute resolution should it choose?

Accepted Answer

A)  private trial 
B)  arbitration 
C)  summary jury trial 
D)  negotiation and settlement 
A)  private trial 
B)  arbitration 
C)  summary jury trial 
D)  negotiation and settlement A

Question 4

ADR programs cannot be used at the appellate level.

Accepted Answer

A) True 
 B)False

Question 5

The process of negotiation and settlement differs from arbitration in that .

Accepted Answer

A)  the process of negotiation takes place in a much more formal setting than in arbitration 
B)  representation by legal counsel is not mandatory in negotiation, unlike in arbitration 
C)  no neutral third party is involved in the negotiation process, unlike in arbitration 
D)  the proceedings of negotiation preserves confidentiality, whereas arbitration must be recorded for review 
A)  the process of negotiation takes place in a much more formal setting than in arbitration 
B)  representation by legal counsel is not mandatory in negotiation, unlike in arbitration 
C)  no neutral third party is involved in the negotiation process, unlike in arbitration 
D)  the proceedings of negotiation preserves confidentiality, whereas arbitration must be recorded for review

Question 6

List what should be included in a drafter's "checklist" for ensuring that a mandatory arbitration clause is not unconscionable.

Accepted Answer

A drafter's checklist for ensuring that

Question 7

More than 95 percent of the collective bargaining agreements in force today have some provision for early neutral case evaluation.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is true about an award in arbitration?

Accepted Answer

A)  An arbitrator's decision is called an award only if monetary compensation is given. 
B)  An arbitrator must cite precedents for the award. 
C)  An award does not have to state any findings of fact or conclusions of law. 
D)  An arbitrator strictly applies a rule of law while arriving at a decision. 
A)  An arbitrator's decision is called an award only if monetary compensation is given. 
B)  An arbitrator must cite precedents for the award. 
C)  An award does not have to state any findings of fact or conclusions of law. 
D)  An arbitrator strictly applies a rule of law while arriving at a decision.

Question 9

Which of the following statements is true about court-mandated mediation?

Accepted Answer

A)  The parties are much more likely to view mediation as a hurdle before a trial. 
B)  The rules on evidence are generally the same for court-mandated mediation and trials. 
C)  The mediator's decision is binding. 
D)  The parties are likely to enter the mediation process with a desire to work out an agreement. 
A)  The parties are much more likely to view mediation as a hurdle before a trial. 
B)  The rules on evidence are generally the same for court-mandated mediation and trials. 
C)  The mediator's decision is binding. 
D)  The parties are likely to enter the mediation process with a desire to work out an agreement.

Question 10

Which of the following statements is true of the National Consumer Arbitration Program?

Accepted Answer

A)  The arbitrator can award punitive damages. 
B)  It can only hear cases that have been dismissed from court. 
C)  Arbitration through this program is more expensive than a lawsuit in court. 
D)  Arbitrators cannot award damages beyond the value of the product in question. 
A)  The arbitrator can award punitive damages. 
B)  It can only hear cases that have been dismissed from court. 
C)  Arbitration through this program is more expensive than a lawsuit in court. 
D)  Arbitrators cannot award damages beyond the value of the product in question.

Question 11

Which of the following is a difference between a private trial and litigation?

Accepted Answer

A)  The disputants select the neutral party in a private trial, but a judge is assigned to a lawsuit. 
B)  Private trials need to be held with a jury, but the parties can waive their right to a jury in litigations. 
C)  A judge has to state the conclusions of law, whereas a referee in a private trial need not. 
D)  The disputants decide whether to be bound by the referee's verdict in a private trial, but not in a lawsuit. 
A)  The disputants select the neutral party in a private trial, but a judge is assigned to a lawsuit. 
B)  Private trials need to be held with a jury, but the parties can waive their right to a jury in litigations. 
C)  A judge has to state the conclusions of law, whereas a referee in a private trial need not. 
D)  The disputants decide whether to be bound by the referee's verdict in a private trial, but not in a lawsuit.

Question 12

Which of the following is true of a binding arbitration clause?

Accepted Answer

A)  The parties that have drawn up the contract can choose the arbitrator. 
B)  The parties that have agreed on this clause can resolve their disputes in a federal court. 
C)  It cannot be included in a collective bargaining agreement. 
D)  It usually indicates that both parties agree to be bound by the arbitrator's award. 
A)  The parties that have drawn up the contract can choose the arbitrator. 
B)  The parties that have agreed on this clause can resolve their disputes in a federal court. 
C)  It cannot be included in a collective bargaining agreement. 
D)  It usually indicates that both parties agree to be bound by the arbitrator's award.

Question 13

Explain why there are concerns regarding the neutrality of dispute resolution firms.

Accepted Answer

Some legal scholars are concerned about

Question 14

Which of the following is an issue with consumers being forced to give up their right to a trial and being coerced into an alternative dispute resolution forum?

Accepted Answer

A)  Arbitration and mediation are generally more expensive than litigation. 
B)  Consumers are likely to get a higher award from a jury than from an arbitrator. 
C)  ADR forums usually take more time to resolve a dispute than trial courts. 
D)  Consumers have no say in the selection of the neutral third party. 
A)  Arbitration and mediation are generally more expensive than litigation. 
B)  Consumers are likely to get a higher award from a jury than from an arbitrator. 
C)  ADR forums usually take more time to resolve a dispute than trial courts. 
D)  Consumers have no say in the selection of the neutral third party.

Question 15

Blee Scales, Inc. and Emerold, Inc. are involved in a dispute over a complex matter. They are currently seeking ways to resolve this dispute. Emerold Inc. does not want to abide by a decision from a third party as it feels that the issue is too complicated for outsiders to understand fully. However, it wants to know the likely outcome if the dispute went to trial. Which of the following dispute resolution methods should Emerold, Inc. choose?

Accepted Answer

A)  minitrials 
B)  private trials 
C)  arbitration 
D)  negotiation and settlement 
A)  minitrials 
B)  private trials 
C)  arbitration 
D)  negotiation and settlement

Question 16

Why is an arbitrator's decision likely to be a compromise?

Accepted Answer

An arbitrator's decision is more likely

Question 17

A criticism of is that it/they may lead to the development of a two-tier system of justice.

Accepted Answer

A)  minitrials 
B)  private trials 
C)  arbitration 
D)  mediation 
A)  minitrials 
B)  private trials 
C)  arbitration 
D)  mediation

Question 18

Mediators decide the terms of agreements.

Accepted Answer

A) True 
 B)False

Question 19

Under the National Labor Relations Act, before engaging in an economic strike to achieve better wages, hours, or working conditions under a new collective bargaining agreement, a union must first contact the and attempt to contract demands.

Accepted Answer

A)  FMCS; mediate 
B)  FTC; mediate 
C)  FMCS; arbitrate 
D)  FTC; arbitrate 
A)  FMCS; mediate 
B)  FTC; mediate 
C)  FMCS; arbitrate 
D)  FTC; arbitrate

Question 20

Which of the following alternate dispute resolution methods empowers the neutral party to enter a legally binding judgment?

Accepted Answer

A)  private trial 
B)  summary jury trial 
C)  negotiation and settlement 
D)  early neutral case evaluation 
A)  private trial 
B)  summary jury trial 
C)  negotiation and settlement 
D)  early neutral case evaluation

Exam 4: Alternative Tools of Dispute Resolution

What are the common uses of arbitration?

Which of the following is a problem associated with arbitration?

Satirn, Inc. is facing a dispute from one of its competitors. Satirn wants to keep the proceedings confidential. It wants to obtain a binding judgment as it believes that it has a strong case. Which of the following methods of dispute resolution should it choose?

ADR programs cannot be used at the appellate level.

The process of negotiation and settlement differs from arbitration in that .

List what should be included in a drafter's "checklist" for ensuring that a mandatory arbitration clause is not unconscionable.

More than 95 percent of the collective bargaining agreements in force today have some provision for early neutral case evaluation.

Which of the following statements is true about an award in arbitration?

Which of the following statements is true about court-mandated mediation?

Which of the following statements is true of the National Consumer Arbitration Program?

Which of the following is a difference between a private trial and litigation?

Which of the following is true of a binding arbitration clause?

Explain why there are concerns regarding the neutrality of dispute resolution firms.

Which of the following is an issue with consumers being forced to give up their right to a trial and being coerced into an alternative dispute resolution forum?

Why is an arbitrator's decision likely to be a compromise?

A criticism of is that it/they may lead to the development of a two-tier system of justice.

Mediators decide the terms of agreements.

Under the National Labor Relations Act, before engaging in an economic strike to achieve better wages, hours, or working conditions under a new collective bargaining agreement, a union must first contact the and attempt to contract demands.

Which of the following alternate dispute resolution methods empowers the neutral party to enter a legally binding judgment?

Critical Thinking and Legal Reasoning

Introduction to Law and the Legal Environment of Business

The American Legal System

Constitutional Principles

White-Collar Crime and the Business Community

Ethics, Social Responsibility, and the Business Manager

The International Legal Environment of Business

The Law of Contracts and Sales I

The Law of Contracts and Sales Ii

The Law of Torts

Product and Service Liability Law

Law of Property: Real and Personal

Intellectual Property

Agency Law

Law and Business Associations I

Law and Business Associations II

The Law of Administrative Agencies

The Employment Relationship and Immigration Laws

Laws Governing Labor-Management Relations

Employment Discrimination

Environmental Law

Rules Governing the Issuance and Trading of Securities

Antitrust Laws

Laws of Debtor-Creditor Relations and Consumer Protection

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