Question 1

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. C

Question 2

Which of the following statements is true of mediation?

Accepted Answer

A) A mediator is appointed by a court. 
B) The proceedings of mediation can be used in litigations. 
C) Mediation is more time-consuming and expensive than litigation. 
D) Mediation is used increasingly to resolve insurance claim disputes and commercial contract problems. 
A) A mediator is appointed by a court. 
B) The proceedings of mediation can be used in litigations. 
C) Mediation is more time-consuming and expensive than litigation. 
D) Mediation is used increasingly to resolve insurance claim disputes and commercial contract problems. D

Question 3

The Equal Employment Opportunity Commission (EEOC) can seek remedies in discrimination cases, even when a binding arbitration agreement exists to settle all employment-related disputes.

Accepted Answer

A) True 
 B)False  True

Question 4

Explain how various states differ in their encouragement of the use of ADR methods.

Accepted Answer

The aggressiveness with which a state en

Question 5

Why does the Federal Arbitration Act (FAA) want to limit a court's power over an arbitration award?

Accepted Answer

The major advantages of arbitration over

Question 6

Lawyers generally avoid negotiation and settlement as a method of dispute resolution.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is true of a summary jury trial?

Accepted Answer

A) A summary jury trial lasts for more than two days. 
B) The jury is composed of ten people. 
C) The verdict delivered by the judge is final and binding. 
D) If a case goes to trial, nothing from the summary trial is admissible as evidence. 
A) A summary jury trial lasts for more than two days. 
B) The jury is composed of ten people. 
C) The verdict delivered by the judge is final and binding. 
D) If a case goes to trial, nothing from the summary trial is admissible as evidence.

Question 8

A contract of adhesion between a consumer and a business party can have a binding arbitration clause.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Which of the following statements is true of a submission agreement?

Accepted Answer

A) It is a binding clause in a contract mandating all disputes to be settled by arbitration. 
B) It specifies the nature of the dispute and how the arbitrator will be selected. 
C) It is an agreement stating that both parties agree to abide by the mediator's decision. 
D) It is an agreement provided in court stating how contract disputes are to be settled. 
A) It is a binding clause in a contract mandating all disputes to be settled by arbitration. 
B) It specifies the nature of the dispute and how the arbitrator will be selected. 
C) It is an agreement stating that both parties agree to abide by the mediator's decision. 
D) It is an agreement provided in court stating how contract disputes are to be settled.

Question 11

Which of the following is the least adversarial of the formal methods of dispute resolution?

Accepted Answer

A) mediation 
B) arbitration 
C) private trial 
D) summary jury trial 
A) mediation 
B) arbitration 
C) private trial 
D) summary jury trial

Question 12

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 13

Which of the following statements is true of an arbitrator?

Accepted Answer

A) An arbitrator must have a background in law. 
B) An arbitrator is usually assigned by a court. 
C) An arbitrator has no say on the substantive and procedural rules to be followed. 
D) An arbitrator's decision is called an award. 
A) An arbitrator must have a background in law. 
B) An arbitrator is usually assigned by a court. 
C) An arbitrator has no say on the substantive and procedural rules to be followed. 
D) An arbitrator's decision is called an award.

Question 14

The American Arbitration Association (AAA) is a private, nonprofit organization.

Accepted Answer

A) True 
 B)False

Question 15

Atlos Inc. is the primary customer of the raw materials provided by Arcturis Inc. Atlos is unhappy about the previous batch of materials supplied, which has led to a dispute between the two corporations. But, in spite of their dispute, the two companies prefer to continue doing business. Hence, they wish to resolve the dispute in an informal manner without a neutral third party. Which of the following dispute resolution methods is likely to work best for them?

Accepted Answer

A) negotiation and settlement 
B) early neutral case evaluation 
C) arbitration 
D) mediation 
A) negotiation and settlement 
B) early neutral case evaluation 
C) arbitration 
D) mediation

Question 16

Which of the following is a characteristic of alternative dispute resolution?

Accepted Answer

A) They generally consume more time than litigations. 
B) The person presiding over the resolution process is assigned by a court. 
C) The presiding person is more likely to be familiar with the subject matter of the dispute than a judge would be. 
D) The formal hearing times cannot be changed to accommodate the parties involved. 
A) They generally consume more time than litigations. 
B) The person presiding over the resolution process is assigned by a court. 
C) The presiding person is more likely to be familiar with the subject matter of the dispute than a judge would be. 
D) The formal hearing times cannot be changed to accommodate the parties involved.

Question 17

Satarn Inc. often does business with Scorpeo Inc. Recently, the two corporations had a minor dispute. However, they wish to continue doing business with one another for which their relationship should be preserved. They came to an agreement that whatever transpires during the resolution process should be confidential. Which of the following dispute resolution methods should they choose?

Accepted Answer

A) litigation 
B) mediation 
C) arbitration 
D) summary jury trials 
A) litigation 
B) mediation 
C) arbitration 
D) summary jury trials

Question 18

Which of the following alternative dispute resolution methods does not involve a neutral third person?

Accepted Answer

A) negotiation and settlement 
B) early neutral case evaluation 
C) minitrial 
D) mediation 
A) negotiation and settlement 
B) early neutral case evaluation 
C) minitrial 
D) mediation

Question 19

Which of the following is a reason to use mediation to resolve environmental disputes?

Accepted Answer

A) It is the most adversarial ADR method. 
B) It can easily accommodate multiple parties. 
C) The proceedings of mediation are confidential. 
D) The agreement reached in mediation is not legally binding. 
A) It is the most adversarial ADR method. 
B) It can easily accommodate multiple parties. 
C) The proceedings of mediation are confidential. 
D) The agreement reached in mediation is not legally binding.

Question 20

Which of the following statements is true about negotiation and settlement?

Accepted Answer

A) It is a formal ADR method that delivers a verdict. 
B) Most lawyers attempt negotiation before taking a case to trial. 
C) It involves an independent or neutral third party. 
D) It is mandatory for both the parties to be represented by a lawyer. 
A) It is a formal ADR method that delivers a verdict. 
B) Most lawyers attempt negotiation before taking a case to trial. 
C) It involves an independent or neutral third party. 
D) It is mandatory for both the parties to be represented by a lawyer.

Exam 4: Alternative Tools of Dispute Resolution

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

Which of the following statements is true of mediation?

The Equal Employment Opportunity Commission (EEOC) can seek remedies in discrimination cases, even when a binding arbitration agreement exists to settle all employment-related disputes.

Explain how various states differ in their encouragement of the use of ADR methods.

Why does the Federal Arbitration Act (FAA) want to limit a court's power over an arbitration award?

Lawyers generally avoid negotiation and settlement as a method of dispute resolution.

Which of the following statements is true of a summary jury trial?

A contract of adhesion between a consumer and a business party can have a binding arbitration clause.

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

Which of the following statements is true of a submission agreement?

Which of the following is the least adversarial of the formal methods of dispute resolution?

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

Which of the following statements is true of an arbitrator?

The American Arbitration Association (AAA) is a private, nonprofit organization.

Which of the following is a characteristic of alternative dispute resolution?

Which of the following alternative dispute resolution methods does not involve a neutral third person?

Which of the following is a reason to use mediation to resolve environmental disputes?

Which of the following statements is true about negotiation and settlement?

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

Law and Business Associations

The Law of Administrative Agencies

The Employment Relationship

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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