Question 1

Which of the following is false about a private trial?

Accepted Answer

A)  Occurs after a case has been filed in court. 
B)  Is voluntary. 
C)  The trial is conducted in private to ensure confidentiality. 
D)  Because the referee's report is filed with the trial judge, the trial is not confidential and becomes public record. 
E)  A referee writes a report stating the findings of fact and conclusions of law, and the report is filed with the trial judge. 
A)  Occurs after a case has been filed in court. 
B)  Is voluntary. 
C)  The trial is conducted in private to ensure confidentiality. 
D)  Because the referee's report is filed with the trial judge, the trial is not confidential and becomes public record. 
E)  A referee writes a report stating the findings of fact and conclusions of law, and the report is filed with the trial judge.

Question 2

If mediation is unsuccessful, the parties can turn to litigation, however, nothing said during the mediation can be used in the litigation because the mediation process is confidential.

Accepted Answer

A) True 
 B)False

Question 3

A ________ allows the parties to submit a specific dispute involving a contractual provision to arbitration if a contract does not provide for arbitration.

Accepted Answer

A)  submission agreement 
B)  binding mediation clause 
C)  binding arbitration clause 
D)  resolution submission clause 
E)  Courts do not allow parties to submit anything if the contract does not provide for arbitration 
A)  submission agreement 
B)  binding mediation clause 
C)  binding arbitration clause 
D)  resolution submission clause 
E)  Courts do not allow parties to submit anything if the contract does not provide for arbitration

Question 4

Which of the following is true regarding the form of ADR known as "negotiation"?

Accepted Answer

A)  The ADR process known as "negotiation" is the same as the ADR process known as "mediation." 
B)  There is only one approach to negotiation, problem-solving. 
C)  There is only one approach to negotiation, adversarial. 
D)  There are two approaches, adversarial negotiation and problem-solving negotiation. 
E)  There is no form of ADR known as negotiation. 
A)  The ADR process known as "negotiation" is the same as the ADR process known as "mediation." 
B)  There is only one approach to negotiation, problem-solving. 
C)  There is only one approach to negotiation, adversarial. 
D)  There are two approaches, adversarial negotiation and problem-solving negotiation. 
E)  There is no form of ADR known as negotiation.

Question 5

What is the arbitrator's decision called?

Accepted Answer

A)  Arbitrator's Decree 
B)  Arbitration decision 
C)  Settlement 
D)  Award 
E)  Subsequent Decree 
A)  Arbitrator's Decree 
B)  Arbitration decision 
C)  Settlement 
D)  Award 
E)  Subsequent Decree

Question 6

Did Alan act properly in hearing the dispute?

Accepted Answer

A)  He acted properly because it is presumed that arbitrators are unbiased regardless of their relationship with a party. 
B)  He acted properly because he only had to reveal the information at issue if Lydia had directly asked about it. 
C)  He should have revealed that he was married to Jae's cousin, but none of the other information had to be revealed. 
D)  He should have revealed that he had received loans from Jae, but he had no obligation to reveal other information. 
E)  He should have revealed all the information and should have refused to arbitrate the case. His actions would be considered by a federal district judge and the award would likely be set aside because of a showing of bias. 
A)  He acted properly because it is presumed that arbitrators are unbiased regardless of their relationship with a party. 
B)  He acted properly because he only had to reveal the information at issue if Lydia had directly asked about it. 
C)  He should have revealed that he was married to Jae's cousin, but none of the other information had to be revealed. 
D)  He should have revealed that he had received loans from Jae, but he had no obligation to reveal other information. 
E)  He should have revealed all the information and should have refused to arbitrate the case. His actions would be considered by a federal district judge and the award would likely be set aside because of a showing of bias.

Question 7

A benefit of arbitration is which of the following, according to the text?

Accepted Answer

A)  Arbitrators are assigned so parties do not have to pick them. 
B)  Arbitration is generally less expensive than litigation. 
C)  Arbitrators are bound by the same rules as judges in applying precedent. 
D)  Arbitrations can be set aside on appeal for the same reasons as court judgments. 
E)  Arbitrations prohibit the use of legal counsel. 
A)  Arbitrators are assigned so parties do not have to pick them. 
B)  Arbitration is generally less expensive than litigation. 
C)  Arbitrators are bound by the same rules as judges in applying precedent. 
D)  Arbitrations can be set aside on appeal for the same reasons as court judgments. 
E)  Arbitrations prohibit the use of legal counsel.

Question 8

In the text's case Circuit City v. Saint Clair Adams, which addressed whether arbitration clauses in employment contracts are enforceable, what was the result at the U.S. Supreme Court level?

Accepted Answer

A)  The Court ruled that the Federal Arbitration Act applies in employment contracts. 
B)  The Court ruled that neither the Federal Arbitration Act nor the common law of arbitration applies in employment contracts. 
C)  The court ruled that the Federal Arbitration Act does not apply in employment contracts but that state statutes involving arbitration would apply to employment contracts. 
D)  The Court ruled that the Federal Arbitration Act does not apply in employment contracts but that the common law of arbitration applies in employment contracts. 
E)  The Court ruled that whether the Federal Arbitration Act applies in employment disputes depends on the type of employment dispute involved, and that if the dispute involves claims of age discrimination, the Federal Arbitration Act does not apply. 
A)  The Court ruled that the Federal Arbitration Act applies in employment contracts. 
B)  The Court ruled that neither the Federal Arbitration Act nor the common law of arbitration applies in employment contracts. 
C)  The court ruled that the Federal Arbitration Act does not apply in employment contracts but that state statutes involving arbitration would apply to employment contracts. 
D)  The Court ruled that the Federal Arbitration Act does not apply in employment contracts but that the common law of arbitration applies in employment contracts. 
E)  The Court ruled that whether the Federal Arbitration Act applies in employment disputes depends on the type of employment dispute involved, and that if the dispute involves claims of age discrimination, the Federal Arbitration Act does not apply.

Question 9

One type of ADR method is med-arb.

Accepted Answer

A) True 
 B)False

Question 10

What is the position of the Equal Employment Opportunity Commission (EEOC) on mediation?

Accepted Answer

A)  The EEOC encourages the mediation of employment discrimination claims. 
B)  The EEOC discourages the mediation of employment discrimination claims. 
C)  The EEOC discourages the mediation of employment discrimination claims in sexual harassment cases but not in age discrimination cases. 
D)  The EEOC discourages the mediation of employment discrimination claims in age discrimination cases but not in sexual harassment cases. 
E)  The EEOC encourages the mediation of all employment discrimination claims except for those arising under the Americans with Disabilities Act where the use of mediation is discouraged. 
A)  The EEOC encourages the mediation of employment discrimination claims. 
B)  The EEOC discourages the mediation of employment discrimination claims. 
C)  The EEOC discourages the mediation of employment discrimination claims in sexual harassment cases but not in age discrimination cases. 
D)  The EEOC discourages the mediation of employment discrimination claims in age discrimination cases but not in sexual harassment cases. 
E)  The EEOC encourages the mediation of all employment discrimination claims except for those arising under the Americans with Disabilities Act where the use of mediation is discouraged.

Question 11

In order to perform arbitration, a person must be a lawyer.

Accepted Answer

A) True 
 B)False

Question 12

[Jade Shoes] Coleman owns a sporting goods store and has purchased top-quality, brand-name athletic shoes from Jade's Shoe Distribution for many years, but they have no written contract in place. Last month, Coleman learned that the latest shipment from Jade's are not authentic, brand-name shoes but instead a knock-off brand that costs a fraction of the price Coleman pays. Coleman cannot sell these shoes because his customers would know the difference, and Coleman demanded Jade refund him. Jade sent Coleman a written request for arbitration within thirty days. In response, Coleman called Jade, threatening to file a lawsuit against Jade and exposing her company as a fraud. Jade laughs, saying Coleman is required to arbitrate their dispute within thirty days.
-Which of the following is not considered an advantage of ADR over traditional litigation as set out in the text readings?

Accepted Answer

A)  ADR is usually less expensive than litigation. 
B)  ADR is structured to be flexible for the parties. 
C)  ADR is less adversarial in nature. 
D)  Businesses may not want to set a precedent through a court decision. 
E)  Companies can hide their legal issues from the public. 
A)  ADR is usually less expensive than litigation. 
B)  ADR is structured to be flexible for the parties. 
C)  ADR is less adversarial in nature. 
D)  Businesses may not want to set a precedent through a court decision. 
E)  Companies can hide their legal issues from the public.

Question 13

If you are a party to a dispute and determining which dispute method is best, you may want to ask if you want to keep the dispute private.

Accepted Answer

A) True 
 B)False

Question 14

ADR is a process done only in the U.S., not in foreign countries.

Accepted Answer

A) True 
 B)False

Question 15

[Home insulation] Jae and Lydia ran a home insulation company for several years. They, however, encountered a dispute regarding the allocation of profit and agreed to discontinue their business. They could not agree on a number of issues involving not only profits, but also winding up the business, disposing of equipment, and other matters. They agreed to hire an arbitrator to settle their disputes. Jae suggested that they use a local lawyer named Alan to arbitrate the matter, and Lydia agreed. Lydia had some medical problems and requested that the arbitration be postponed for a short time. Jae objected to her request. Alan would not agree to Lydia's request for a postponement, stating that any arbitration proceeding must be heard within 30 days and that the time period was nearly over. Alan conducted the arbitration hearing. He refused to hear any evidence from any witnesses, explaining that he only had the authority to hear testimony from Jae and Lydia. Therefore, Lydia was not able to present testimony of a property appraiser she had hired. Alan proceeded to rule in favor of Jae on all counts. Lydia was very discouraged and discussed the situation with her friend Mia. Mia said "My goodness! Didn't you know that Alan and Jae play golf together every week, that Jae is married to Alan's cousin, and that Jae has loaned money to Alan in the past?" Lydia immediately called Alan and asked him about his connection with Jae. Alan acknowledged those connections. He told Mia, however, that he was perfectly fair and that there was nothing she could do. The Federal Arbitration Act applies.
-Regarding Alan's refusal to hear testimony other than that presented by Jae and Lydia, which of the following is true?

Accepted Answer

A)  Alan was wrong. He had a duty to consider other relevant testimony as well. 
B)  Alan was correct. 
C)  Alan was correct, but only because the dispute involved the discontinuance of a business. 
D)  Alan had a duty to consider other testimony, but only up to two other witnesses per side. 
E)  Alan had a duty to consider other testimony, but only up to three other witnesses per side. 
A)  Alan was wrong. He had a duty to consider other relevant testimony as well. 
B)  Alan was correct. 
C)  Alan was correct, but only because the dispute involved the discontinuance of a business. 
D)  Alan had a duty to consider other testimony, but only up to two other witnesses per side. 
E)  Alan had a duty to consider other testimony, but only up to three other witnesses per side.

Question 16

Many federal district courts use ADR to resolve disputes within cases. Which form of ADR is most often used?

Accepted Answer

A)  Arbitration 
B)  Mediation 
C)  Federal summation 
D)  Federal private trials 
E)  Minitrials 
A)  Arbitration 
B)  Mediation 
C)  Federal summation 
D)  Federal private trials 
E)  Minitrials

Question 17

[Home insulation] Jae and Lydia ran a home insulation company for several years. They, however, encountered a dispute regarding the allocation of profit and agreed to discontinue their business. They could not agree on a number of issues involving not only profits, but also winding up the business, disposing of equipment, and other matters. They agreed to hire an arbitrator to settle their disputes. Jae suggested that they use a local lawyer named Alan to arbitrate the matter, and Lydia agreed. Lydia had some medical problems and requested that the arbitration be postponed for a short time. Jae objected to her request. Alan would not agree to Lydia's request for a postponement, stating that any arbitration proceeding must be heard within 30 days and that the time period was nearly over. Alan conducted the arbitration hearing. He refused to hear any evidence from any witnesses, explaining that he only had the authority to hear testimony from Jae and Lydia. Therefore, Lydia was not able to present testimony of a property appraiser she had hired. Alan proceeded to rule in favor of Jae on all counts. Lydia was very discouraged and discussed the situation with her friend Mia. Mia said "My goodness! Didn't you know that Alan and Jae play golf together every week, that Jae is married to Alan's cousin, and that Jae has loaned money to Alan in the past?" Lydia immediately called Alan and asked him about his connection with Jae. Alan acknowledged those connections. He told Mia, however, that he was perfectly fair and that there was nothing she could do. The Federal Arbitration Act applies.
-Regarding Alan's refusal of a continuance based upon Lydia's medical problem, which of the following is true?

Accepted Answer

A)  Alan's statement that a hearing must be held within 30 days was correct. 
B)  Alan was prohibited by law from granting a continuance over Jae's objection. 
C)  Alan was incorrect regarding the time in which a hearing must be held because under the Federal Arbitration Act, the applicable time period is 60 days. 
D)  Under the Federal Arbitration Act, an arbitration proceeding may not be postponed based upon illness. 
E)  Alan was probably wrong in refusing the continuance, and that could present a basis upon which to set aside his award. 
A)  Alan's statement that a hearing must be held within 30 days was correct. 
B)  Alan was prohibited by law from granting a continuance over Jae's objection. 
C)  Alan was incorrect regarding the time in which a hearing must be held because under the Federal Arbitration Act, the applicable time period is 60 days. 
D)  Under the Federal Arbitration Act, an arbitration proceeding may not be postponed based upon illness. 
E)  Alan was probably wrong in refusing the continuance, and that could present a basis upon which to set aside his award.

Question 18

[Sexual harassment ADR] Naomi works at a fast-food restaurant which is owned by an international company located in Mexico. Naomi is very angry with her supervisor, who has been making inappropriate sexual comments to her and other employees. Naomi decides to sue and retains a lawyer, Dominic. Dominic talks with the owners of the restaurant and is informed that Naomi signed an agreement to mediate and also to arbitrate any claims. Naomi informed Dominic about other employees who entered into such agreements and later complained of harassment. Dominic promises her that under federal law, he is legally entitled to get copies of all documents used during any other mediations and arbitrations and that he is also entitled to get detailed information regarding what was said and agreed upon by them. Dominic also tells Naomi that, while he is not going to bring it up now, if they so choose, Dominic and Naomi can avoid the arbitration agreement because under a new federal law, such agreements cannot be enforced if one of the companies involved is internationally based. He also tells Naomi in response to her question about the possibility of mediation in her case to forget it, because mediation is pretty much the same thing as arbitration. Dominic tells Naomi that an option is to arbitrate and, if the outcome is bad at arbitration, file a court action in federal court. Dominic says that the federal court judge would not consider an arbitrator's decision in making a determination.
-Can Dominic obtain information regarding what occurred at previous mediations and arbitrations if the Uniform Mediation Act and the Federal Arbitration Act apply?

Accepted Answer

A)  Under federal law, Dominic is entitled to all documents introduced at both mediations and arbitrations, and he can also get copies of statements, but only for proceedings at which a court reporter was present. 
B)  Under federal law, in regard to mediations, Dominic can get copies of any written documents reviewed but not accounts of statements; and he cannot get any information regarding previous arbitrations. 
C)  Under federal law, Dominic can get accounts of statements but not copies of written documents in regard to both mediations and arbitrations. 
D)  Under federal law, Dominic can get copies of documents but not accounts of statements in regard to both mediations and arbitrations. 
E)  Federal law does not entitle Dominic to any information introduced by the parties during previous mediations or arbitrations. 
A)  Under federal law, Dominic is entitled to all documents introduced at both mediations and arbitrations, and he can also get copies of statements, but only for proceedings at which a court reporter was present. 
B)  Under federal law, in regard to mediations, Dominic can get copies of any written documents reviewed but not accounts of statements; and he cannot get any information regarding previous arbitrations. 
C)  Under federal law, Dominic can get accounts of statements but not copies of written documents in regard to both mediations and arbitrations. 
D)  Under federal law, Dominic can get copies of documents but not accounts of statements in regard to both mediations and arbitrations. 
E)  Federal law does not entitle Dominic to any information introduced by the parties during previous mediations or arbitrations.

Question 19

Lowell and Nadine have a dispute in federal district court. Lowell indicates that since their dispute does not involve a clause in their contract that mandates any form of ADR, he and Nadine can choose whether to participate in an ADR process or not. Is this true?

Accepted Answer

A)  No, litigants at the federal level are required to use arbitration programs. 
B)  No, litigants at the federal level are required to use the court's mediation process. 
C)  Yes, Nadine and Lowell can determine whether or not they want to participate in a form of ADR. 
D)  Yes, the US Supreme Court ruled that the Alternative Dispute Resolution Act is unenforceable by law. 
E)  All federal district courts can decide whether litigants must use ADR and Nadine and Lowell should check with the district court in which their case is pending. 
A)  No, litigants at the federal level are required to use arbitration programs. 
B)  No, litigants at the federal level are required to use the court's mediation process. 
C)  Yes, Nadine and Lowell can determine whether or not they want to participate in a form of ADR. 
D)  Yes, the US Supreme Court ruled that the Alternative Dispute Resolution Act is unenforceable by law. 
E)  All federal district courts can decide whether litigants must use ADR and Nadine and Lowell should check with the district court in which their case is pending.

Question 20

Lena receives notice of a lawsuit that indicates the suit is in the federal district court. She has heard about the Alternative Dispute Resolution Act and has been told she is required by law to use a form of ADR before she goes to court. Is this true?

Accepted Answer

A)  Yes, Lena must agree to mediation which is required by law in all federal district courts. 
B)  Yes, Lena must agree to arbitration which is required by law in all federal district courts. 
C)  Yes, Lena could pick either mediation or arbitration because some form of ADR is required by law in federal district court. 
D)  Under the act, Lena must consider the use of ADR, but courts are not uniform in their implementation of the act. 
E)  No, Lena is not bound to follow ADR and can go straight to trial and cannot be forced into any ADR process by law. 
A)  Yes, Lena must agree to mediation which is required by law in all federal district courts. 
B)  Yes, Lena must agree to arbitration which is required by law in all federal district courts. 
C)  Yes, Lena could pick either mediation or arbitration because some form of ADR is required by law in federal district court. 
D)  Under the act, Lena must consider the use of ADR, but courts are not uniform in their implementation of the act. 
E)  No, Lena is not bound to follow ADR and can go straight to trial and cannot be forced into any ADR process by law.

Exam 4: Alternative Dispute Resolution

Which of the following is false about a private trial?

If mediation is unsuccessful, the parties can turn to litigation, however, nothing said during the mediation can be used in the litigation because the mediation process is confidential.

A ________ allows the parties to submit a specific dispute involving a contractual provision to arbitration if a contract does not provide for arbitration.

Which of the following is true regarding the form of ADR known as "negotiation"?

What is the arbitrator's decision called?

Did Alan act properly in hearing the dispute?

A benefit of arbitration is which of the following, according to the text?

In the text's case Circuit City v. Saint Clair Adams, which addressed whether arbitration clauses in employment contracts are enforceable, what was the result at the U.S. Supreme Court level?

One type of ADR method is med-arb.

What is the position of the Equal Employment Opportunity Commission (EEOC) on mediation?

In order to perform arbitration, a person must be a lawyer.

If you are a party to a dispute and determining which dispute method is best, you may want to ask if you want to keep the dispute private.

ADR is a process done only in the U.S., not in foreign countries.

Many federal district courts use ADR to resolve disputes within cases. Which form of ADR is most often used?

Lowell and Nadine have a dispute in federal district court. Lowell indicates that since their dispute does not involve a clause in their contract that mandates any form of ADR, he and Nadine can choose whether to participate in an ADR process or not. Is this true?

Lena receives notice of a lawsuit that indicates the suit is in the federal district court. She has heard about the Alternative Dispute Resolution Act and has been told she is required by law to use a form of ADR before she goes to court. Is this true?

An Introduction to Dynamic Business Law

Business Ethics

The Us Legal System

Constitutional Principles

International and Comparative Law

Crime and the Business Community

Tort Law

Negligence and Strict Liability

Product Liability

Liability of Accountants and Other Professionals

Intellectual Property

Introduction to Contracts

Agreement

Consideration

Capacity and Legality

Legal Assent

Contracts in Writing

Third-Party Rights to Contracts

Discharge and Remedies

Introduction to Sales and Lease Contracts

Title, Risk of Loss, and Insurable Interest

Performance and Obligations Under Sales and Leases

Remedies for Breach of Sales and Lease Contracts

Warranties

Negotiable Instruments: Negotiability and Transferability

Negotiation, Holder in Due Course, and Defenses

Liability, Defenses, and Discharge

Checks and Electronic Fund Transfers

Secured Transactions

Other Creditors Remedies and Suretyship

Bankruptcy and Reorganization

Agency Formation and Duties

Liability to Third Parties and Termination

Forms of Business Organization

Partnerships: Nature, Formation, and Operation

Partnerships: Termination and Limited Partnerships

Corporations: Formation and Financing

Corporations: Directors, Officers, and Shareholders

Corporations: Mergers, Consolidations, Terminations

Corporations: Securities and Investor Protection

Employment and Labor Law

Employment Discrimination

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

The Nature of Property, Personal Property, and Bailments

Real Property

Landlord-Tenant Law

Insurance Law

Wills and Trusts

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