Question 1

The arbitrator typically provides a decision within days of an arbitration hearing.

Accepted Answer

A) 30 
B) 25 
C) 10 
D) 120 
E) 90 
A) 30 
B) 25 
C) 10 
D) 120 
E) 90

Question 2

[Salsa Sensations] Sofia,co-owner of a popular dance club called Salsa Sensations,discovered her co-owner and best friend Renata,has been secretly pocketing cash receipts.Salsa Sensations' business is booming.Sofia meets Gordon,an attorney.Gordon advises Sofia that she should engage in ADR instead of filing a lawsuit against Renata because it would be faster and cheaper than litigation.
-If Sofia wants to engage in ADR without the cost of paying a neutral third party,which type of ADR should Gordon suggest?

Accepted Answer

A) Private trial 
B) Minitrial 
C) Med-arb 
D) Negotiation 
E) Early neutral evaluation 
A) Private trial 
B) Minitrial 
C) Med-arb 
D) Negotiation 
E) Early neutral evaluation

Question 3

Victor signs an arbitration agreement providing that he will arbitrate any disputes with his employer,Business Corp.Victor believes that Business Corp has discriminated against him in violation of the Americans with Disabilities Act.The EEOC also investigated the situation and brought an action against Business Corp alleging that Business Corp discriminated against Victor in violation of the Americans with Disabilities Act.What is the effect of the arbitration clause in regards to the action brought by the EEOC?

Accepted Answer

A) The arbitration clause is not binding on the EEOC. 
B) The arbitration clause is enforceable and binding on the EEOC only if Victor is the only employee in the company who has allegedly been discriminated against under the Americans with Disabilities Act. 
C) The arbitration clause is enforceable and binding on the EEOC only if Business Corp provided the EEOC with a copy of the agreement before the suit was filed. 
D) The EEOC can avoid the arbitration clause only if it can show that it prosecuted Business Corp in the past and that Business Corp is a repeat offender. 
E) The arbitration clause is enforceable and binding on the EEOC. 
A) The arbitration clause is not binding on the EEOC. 
B) The arbitration clause is enforceable and binding on the EEOC only if Victor is the only employee in the company who has allegedly been discriminated against under the Americans with Disabilities Act. 
C) The arbitration clause is enforceable and binding on the EEOC only if Business Corp provided the EEOC with a copy of the agreement before the suit was filed. 
D) The EEOC can avoid the arbitration clause only if it can show that it prosecuted Business Corp in the past and that Business Corp is a repeat offender. 
E) The arbitration clause is enforceable and binding on the EEOC.

Question 4

Parties may submit a specific dispute involving a contractual provision to arbitration through the use of a if a contract does not provide for arbitration.

Accepted Answer

A) Suggested ADR resolution clause 
B) Submission agreement 
C) Binding arbitration clause 
D) Binding mediatory clause 
E) The parties may not submit a specific dispute to arbitration if the contract does not provide for arbitration 
A) Suggested ADR resolution clause 
B) Submission agreement 
C) Binding arbitration clause 
D) Binding mediatory clause 
E) The parties may not submit a specific dispute to arbitration if the contract does not provide for arbitration

Question 5

[MegaTron] Emilia filed a charge of discrimination with the Equal Employment Opportunity Commission EEOC),alleging that her employer,MegaTron,failed to promote her because of her nationality and gender.The EEOC had already received several discrimination charges from other employees alleging similar conduct by MegaTron.When Emilia was hired,she signed an employment contract with a clause that states allwork-related claims must be resolved through arbitration.
-If,after filing her charge of discrimination with the EEOC,Emilia then filed a discrimination lawsuit against MegaTron,what would the court most likely do?

Accepted Answer

A) Allow the lawsuit to move forward because employees have a right to file a lawsuit. 
B) Dismiss the lawsuit,because of Emilia's poor performance. 
C) Allow the lawsuit because Emilia did not foresee she might suffer discrimination. 
D) Allow the lawsuit because arbitration clauses in employment contracts are not binding on employees. 
E) Dismiss the lawsuit because of the binding arbitration clause in her employment contract. 
A) Allow the lawsuit to move forward because employees have a right to file a lawsuit. 
B) Dismiss the lawsuit,because of Emilia's poor performance. 
C) Allow the lawsuit because Emilia did not foresee she might suffer discrimination. 
D) Allow the lawsuit because arbitration clauses in employment contracts are not binding on employees. 
E) Dismiss the lawsuit because of the binding arbitration clause in her employment contract.

Question 6

The resolution of legal disputes through methods other than litigation is called ADR.

Accepted Answer

A) True 
 B)False

Question 7

Several merchants signed a binding arbitration agreement with American Express Co.The arbitration agreement included a clause prohibiting class action arbitration.Later,after a serious dispute arose involving a federal statute,the merchants wanted to pursue class action arbitration against American Express arguing that it would be too expensive to pursue the claims individually.Assuming the Federal Arbitration Act applies,how should a court rule on the issue?

Accepted Answer

A) The court should uphold the arbitration agreement itself and uphold the class action provision but limit any class action proceeding to no more than 20 plaintiffs. 
B) The court should uphold the arbitration agreement itself and uphold the class action provision but limit any class action proceeding to no more than 10 plaintiffs. 
C) The court should uphold the arbitration agreement itself but strike the provision prohibiting class action arbitration. 
D) The court should strike the whole arbitration agreement because a claim under federal law is involved,and the parties should be required to go to court for any relief. 
E) The court should uphold the agreement prohibiting class action arbitration. 
A) The court should uphold the arbitration agreement itself and uphold the class action provision but limit any class action proceeding to no more than 20 plaintiffs. 
B) The court should uphold the arbitration agreement itself and uphold the class action provision but limit any class action proceeding to no more than 10 plaintiffs. 
C) The court should uphold the arbitration agreement itself but strike the provision prohibiting class action arbitration. 
D) The court should strike the whole arbitration agreement because a claim under federal law is involved,and the parties should be required to go to court for any relief. 
E) The court should uphold the agreement prohibiting class action arbitration.

Question 8

Which of the following is true regarding ADR in federal courts and agencies?

Accepted Answer

A) Federal courts and agencies may "opt in" to a federal mediation program. 
B) Both federal district courts and federal agencies are required by law to have ADR programs. 
C) Federal agencies are required to create internal ADR programs,but federal district courts may "opt out" of establishing these programs. 
D) Federal district courts are required to have ADR programs,but such programs are not mandatory for federal agencies. 
E) There is no requirement that federal courts or federal agencies have ADR programs. 
A) Federal courts and agencies may "opt in" to a federal mediation program. 
B) Both federal district courts and federal agencies are required by law to have ADR programs. 
C) Federal agencies are required to create internal ADR programs,but federal district courts may "opt out" of establishing these programs. 
D) Federal district courts are required to have ADR programs,but such programs are not mandatory for federal agencies. 
E) There is no requirement that federal courts or federal agencies have ADR programs.

Question 9

Under the Federal Arbitration Act,for which reasons may an arbitrator's award be set aside?

Accepted Answer

1.The award was the result of corruption

Question 10

Which of the following is true in regard to precedent in relation to law in general and arbitration?

Accepted Answer

A) Like the law in general,the law governing arbitration agreements is not a fixed set of rules or precedents. 
B) Both the law in general and the law of arbitration have a fixed set of precedents except in the area of consumer law in which there is no fixed set of law or precedents. 
C) Law in general has a fixed set of rules or precedents,but the law governing arbitration is not a fixed set of rules or precedents. 
D) Unlike the law in general,the law governing arbitration agreements is a fixed set of rules or precedents. 
E) Both the law in general and the law of arbitration operate within a fixed set of rules and precedents. 
A) Like the law in general,the law governing arbitration agreements is not a fixed set of rules or precedents. 
B) Both the law in general and the law of arbitration have a fixed set of precedents except in the area of consumer law in which there is no fixed set of law or precedents. 
C) Law in general has a fixed set of rules or precedents,but the law governing arbitration is not a fixed set of rules or precedents. 
D) Unlike the law in general,the law governing arbitration agreements is a fixed set of rules or precedents. 
E) Both the law in general and the law of arbitration operate within a fixed set of rules and precedents.

Question 11

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

Question 12

Which of the following is generally true regarding minitrials?

Accepted Answer

A) A minitrial must follow and come after an arbitration. 
B) It is more costly than arbitration. 
C) A minitrial must follow and come after a failed mediation. 
D) In a typical minitrial,business representatives have settlement authority. 
E) A minitrial utilizes a jury to make a recommended decision. 
A) A minitrial must follow and come after an arbitration. 
B) It is more costly than arbitration. 
C) A minitrial must follow and come after a failed mediation. 
D) In a typical minitrial,business representatives have settlement authority. 
E) A minitrial utilizes a jury to make a recommended decision.

Question 13

An arbitrator is more likely to issue a compromise decision than a judge.

Accepted Answer

A) True 
 B)False

Question 14

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

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Melanie and Gabriela have a dispute regarding ownership of a dog,Buddy.Gabriela removed Buddy's tags in order to give him a bath.Knowing what was coming,Buddy made a run for it and ended up at Melanie's home down the street.When Gabriela saw Melanie walking Buddy,she demanded his return.Melanie refused.A lawyer in the neighborhood suggested either a neutral case evaluation or mediation in an attempt to resolve the feud.Describe mediation and neutral case evaluation.Which would you suggest and why?

Accepted Answer

Mediation occurs when the parties hire a

Question 17

Sofia is considering Daniel as an independent contractor to do clean up and maintenance for her building,which has several tenants.She is aware that Daniel has sued some previous building owners.He does a good job,however,and she would like to hire him.Daniel has agreed to sign an arbitration agreement.What should Sofia do to have a binding agreement that will be enforced?

Accepted Answer

Student responses ma

Question 18

Which of the following is true regarding areas in which arbitration is used?

Accepted Answer

A) Arbitration is used in medical malpractice cases,environmental disputes,and insurance liability claim disputes,but not in commercial contract disputes because those disputes are governed by the UCC. 
B) Arbitration is used in medical malpractice cases,commercial contract disputes,and insurance liability claim disputes,but not in environmental disputes because those disputes are governed strictly by federal law. 
C) Arbitration is used in employment,medical malpractice cases,environmental disputes,commercial contract disputes,and insurance liability claims. 
D) Arbitration is used in medical malpractice cases,environmental disputes,and commercial contract disputes,but not in insurance liability claim disputes because those claims are governed strictly by state regulatory law. 
E) Arbitration is used in environmental disputes,commercial contract disputes,and insurance liability claim disputes,but not in medical malpractice cases because those cases are governed strictly by state statutory law and also state common law on negligence. 
A) Arbitration is used in medical malpractice cases,environmental disputes,and insurance liability claim disputes,but not in commercial contract disputes because those disputes are governed by the UCC. 
B) Arbitration is used in medical malpractice cases,commercial contract disputes,and insurance liability claim disputes,but not in environmental disputes because those disputes are governed strictly by federal law. 
C) Arbitration is used in employment,medical malpractice cases,environmental disputes,commercial contract disputes,and insurance liability claims. 
D) Arbitration is used in medical malpractice cases,environmental disputes,and commercial contract disputes,but not in insurance liability claim disputes because those claims are governed strictly by state regulatory law. 
E) Arbitration is used in environmental disputes,commercial contract disputes,and insurance liability claim disputes,but not in medical malpractice cases because those cases are governed strictly by state statutory law and also state common law on negligence.

Question 19

Which of the following is true regarding private trials?

Accepted Answer

A) Those who lack funds must use a slower public system,but information from private trials is open to the public,similar to trials in state or federal court. 
B) They are a form of state or federal litigation closed to the public to protect the identity of litigants in certain sensitive situations. 
C) They are generally slower than regular litigation. 
D) They may allow defendants to hide wrongdoing from the public. 
E) They unfairly discriminate against corporations because by law in some cases corporations must pay the costs involved for indigent plaintiffs. 
A) Those who lack funds must use a slower public system,but information from private trials is open to the public,similar to trials in state or federal court. 
B) They are a form of state or federal litigation closed to the public to protect the identity of litigants in certain sensitive situations. 
C) They are generally slower than regular litigation. 
D) They may allow defendants to hide wrongdoing from the public. 
E) They unfairly discriminate against corporations because by law in some cases corporations must pay the costs involved for indigent plaintiffs.

Question 20

The neutral party provides a binding ruling in an early neutral case evaluation.

Accepted Answer

A) True 
 B)False

Exam 4: Alternative Dispute Resolution

The arbitrator typically provides a decision within days of an arbitration hearing.

Parties may submit a specific dispute involving a contractual provision to arbitration through the use of a if a contract does not provide for arbitration.

The resolution of legal disputes through methods other than litigation is called ADR.

Which of the following is true regarding ADR in federal courts and agencies?

Under the Federal Arbitration Act,for which reasons may an arbitrator's award be set aside?

Which of the following is true in regard to precedent in relation to law in general and arbitration?

Regarding Alan's refusal to hear testimony other than that presented by Jae and Lydia,which of the following is true?

Which of the following is generally true regarding minitrials?

An arbitrator is more likely to issue a compromise decision than a judge.

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

Which of the following is true regarding areas in which arbitration is used?

Which of the following is true regarding private trials?

The neutral party provides a binding ruling in an early neutral case evaluation.

An Introduction to Dynamic Business Law

Business Ethics

The Uslegal 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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