Question 1

When does a private trial typically occur?

Accepted Answer

A)  After a jury trial and prior to appeal. 
B)  After a case has been filed in federal court, but parties must wait at least 30 days. 
C)  After a case has been filed in either state or district court. 
D)  Before a case has been filed in any court. 
E)  Upon order of a federal judge only. 
A)  After a jury trial and prior to appeal. 
B)  After a case has been filed in federal court, but parties must wait at least 30 days. 
C)  After a case has been filed in either state or district court. 
D)  Before a case has been filed in any court. 
E)  Upon order of a federal judge only. C

Question 2

What is the primary ADR process used in federal district courts?

Accepted Answer

A)  Mediation 
B)  Arbitration 
C)  Summary jury trials 
D)  Early neutral case evaluation 
E)  Private trials 
A)  Mediation 
B)  Arbitration 
C)  Summary jury trials 
D)  Early neutral case evaluation 
E)  Private trials A

Question 3

Which of the following is accurate regarding the speed and cost of ADR?

Accepted Answer

A)  It is usually faster and cheaper. 
B)  It is usually faster but more expensive. 
C)  It is usually slower and more expensive. 
D)  It is usually slower but cheaper. 
E)  No studies have known, so issues regarding the speed and cost of ADR as opposed to traditional litigation is unknown. 
A)  It is usually faster and cheaper. 
B)  It is usually faster but more expensive. 
C)  It is usually slower and more expensive. 
D)  It is usually slower but cheaper. 
E)  No studies have known, so issues regarding the speed and cost of ADR as opposed to traditional litigation is unknown. A

Question 4

Which of the following is true regarding the Equal Employment Opportunity Commission (EEOC) position 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 5

Which of the following is true regarding the remedy if a party does not abide by an agreement reached in mediation?

Accepted Answer

A)  Because mediation is a voluntary process, there is no legal remedy. 
B)  The remedy is to return to mandatory mediation. 
C)  The remedy is to proceed to arbitration. 
D)  The remedy is to sue for breach of contract. 
E)  The remedy is to proceed to a minitrial. 
A)  Because mediation is a voluntary process, there is no legal remedy. 
B)  The remedy is to return to mandatory mediation. 
C)  The remedy is to proceed to arbitration. 
D)  The remedy is to sue for breach of contract. 
E)  The remedy is to proceed to a minitrial.

Question 6

A(n) ______ is a provision in a contract that mandates that all disputes arising under the contract must be settled by arbitration.

Accepted Answer

A)  Binding arbitration clause 
B)  Court-annexed arbitration clause 
C)  Approved mediation/arbitration clause 
D)  Consolidated merger clause 
E)  ADR neutral clause 
A)  Binding arbitration clause 
B)  Court-annexed arbitration clause 
C)  Approved mediation/arbitration clause 
D)  Consolidated merger clause 
E)  ADR neutral clause

Question 7

What is a summary jury trial?

Accepted Answer

A)  An abbreviated trial that leads to a nonbinding jury verdict. 
B)  An unabbreviated trial that leads to a binding jury verdict. 
C)  An abbreviated trial that leads to a binding jury verdict. 
D)  An abbreviated trial in which only a few witnesses are called to the stand leading to a binding verdict. 
E)  A binding trial conducted by a panel of mediators after a failed mediation. 
A)  An abbreviated trial that leads to a nonbinding jury verdict. 
B)  An unabbreviated trial that leads to a binding jury verdict. 
C)  An abbreviated trial that leads to a binding jury verdict. 
D)  An abbreviated trial in which only a few witnesses are called to the stand leading to a binding verdict. 
E)  A binding trial conducted by a panel of mediators after a failed mediation.

Question 8

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)  Unlike the law in general, the law governing arbitration agreements is a fixed set of rules 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)  Neither the law in general nor the law of arbitration has a fixed set of precedents. 
E)  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. 
A)  Like the law in general, the law governing arbitration agreements is not a fixed set of rules or precedents. 
B)  Unlike the law in general, the law governing arbitration agreements is a fixed set of rules 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)  Neither the law in general nor the law of arbitration has a fixed set of precedents. 
E)  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.

Question 9

"Pet Flicks." Jill went to work as an independent contracting photographer for Exotic Pet Flicks, a company specializing in photographing exotic pets, such as monkeys and snakes, with their owners. The company's home office was in California, but Jill worked in Florida. Before she started work, Jill signed an agreement to arbitrate any dispute she had with the company. The arbitration agreement provided that in the event of a dispute, Jill would completely cover the cost of the arbitration; that she could only receive up to $150 in damages regardless of her claims, punitive or otherwise; and that any arbitration would be conducted at the company's home office. The agreement also provided that the arbitrator was not bound to strictly follow the official court rules of evidence. Jill signed the agreement because she really needed a job and liked animals. Her only previous animal photography experience, however, had been with cats and dogs. Jill's contract provided that she would be paid $100 per shoot and that the company would take steps to ensure her safety. One day she was called in to photograph a skunk and its owner. She was told by the receptionist at Exotic Pet Flicks that the skunk had been altered so that it could not spray. Jill felt safe. Unfortunately, the skunk had not been altered. Just as she was starting to shoot, the skunk became upset. It ran over, sprayed Jill, and in the resulting commotion, Jill's expensive camera was knocked over and broken. Plus, Jill's outfit was ruined and she stank for days. Jill wants to sue Exotic Pet Flicks for $5,000 to cover the cost of her camera, her clothing, and her general stinkiness for several days. Jill says that she cannot afford to pay for the arbitration.
-What effect will the provision that the arbitration will be conducted at the company's home state have on the agreement?

Accepted Answer

A)  None; only because an employee/employer relationship is involved. 
B)  None because Jill freely signed the agreement. 
C)  None because a domestic company, not an international one, is involved. 
D)  A court will be unlikely to enforce the agreement only if it can be proven that Jill did not read the agreement before she signed it. 
E)  A court may be more likely to not enforce the agreement because of the distance and expense involved. 
A)  None; only because an employee/employer relationship is involved. 
B)  None because Jill freely signed the agreement. 
C)  None because a domestic company, not an international one, is involved. 
D)  A court will be unlikely to enforce the agreement only if it can be proven that Jill did not read the agreement before she signed it. 
E)  A court may be more likely to not enforce the agreement because of the distance and expense involved.

Question 10

Billy signs an arbitration agreement providing that he will arbitrate any disputes with his employer, ABC Company. Billy believes that ABC Company has discriminated against him in violation of the Americans with Disabilities Act. The EEOC also investigated the situation and brought an action against ABC Company alleging that ABC Company discriminated against Billy 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 enforceable and binding on the EEOC. 
B)  The arbitration clause is enforceable and binding on the EEOC only if ABC Company provided the EEOC with a copy of the agreement before the suit was filed. 
C)  The arbitration clause is enforceable and binding on the EEOC only if Billy is the only employee in the company who has allegedly been discriminated against under the Americans with Disabilities Act. 
D)  The arbitration clause is not binding on the EEOC. 
E)  The EEOC can avoid the arbitration clause only if it can show that it prosecuted ABC Company in the past and that ABC Company is a repeat offender. 
A)  The arbitration clause is enforceable and binding on the EEOC. 
B)  The arbitration clause is enforceable and binding on the EEOC only if ABC Company provided the EEOC with a copy of the agreement before the suit was filed. 
C)  The arbitration clause is enforceable and binding on the EEOC only if Billy is the only employee in the company who has allegedly been discriminated against under the Americans with Disabilities Act. 
D)  The arbitration clause is not binding on the EEOC. 
E)  The EEOC can avoid the arbitration clause only if it can show that it prosecuted ABC Company in the past and that ABC Company is a repeat offender.

Question 11

What did the U.S. Supreme Court rule in the case of Robert Gilmer v. Interstate/Johnson Lane Corporation involving whether a claim under the federal Age Discrimination in Employment Act was subject to arbitration?

Accepted Answer

A)  That the agreement by which the plaintiff agreed to arbitrate all employment disputes as a condition of his employment was valid. 
B)  That the text of the federal Age Discrimination in Employment Act prohibited arbitration. 
C)  That the EEOC would be bound by the employee's agreement to arbitrate all employment disputes and that, therefore, requiring arbitration would be improper. 
D)  That compulsory arbitration improperly deprived the plaintiff of a public forum through which to prove his claims. 
E)  That arbitration was an inadequate remedy because arbitrators may not fashion equitable remedies. 
A)  That the agreement by which the plaintiff agreed to arbitrate all employment disputes as a condition of his employment was valid. 
B)  That the text of the federal Age Discrimination in Employment Act prohibited arbitration. 
C)  That the EEOC would be bound by the employee's agreement to arbitrate all employment disputes and that, therefore, requiring arbitration would be improper. 
D)  That compulsory arbitration improperly deprived the plaintiff of a public forum through which to prove his claims. 
E)  That arbitration was an inadequate remedy because arbitrators may not fashion equitable remedies.

Question 12

Med-arb is a type of ADR method.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is true regarding strikes under the National Labor Relations Act?

Accepted Answer

A)  A union must contact the State Mediation Consortium to attempt to mediate its demands before beginning a strike to achieve higher wages or better working hours. 
B)  A union must contact the National Mediation Service to attempt to mediate its demands before beginning a strike to achieve higher wages or better working hours. 
C)  A union must contact the Federal Mediation and Conciliation Services to attempt to mediate its demands before beginning a strike to achieve higher wages or better working hours. 
D)  A union must contact the Judicial Arbitration and Mediation Services to attempt to mediate its demands before beginning a strike to achieve higher wages or better working hours. 
E)  A union has no obligation to inquire into mediation before beginning a strike for any reason. 
A)  A union must contact the State Mediation Consortium to attempt to mediate its demands before beginning a strike to achieve higher wages or better working hours. 
B)  A union must contact the National Mediation Service to attempt to mediate its demands before beginning a strike to achieve higher wages or better working hours. 
C)  A union must contact the Federal Mediation and Conciliation Services to attempt to mediate its demands before beginning a strike to achieve higher wages or better working hours. 
D)  A union must contact the Judicial Arbitration and Mediation Services to attempt to mediate its demands before beginning a strike to achieve higher wages or better working hours. 
E)  A union has no obligation to inquire into mediation before beginning a strike for any reason.

Question 14

Which of the following is true regarding the use of legal counsel at arbitration proceedings?

Accepted Answer

A)  It is up to each of the parties. They may have legal counsel or they may not. 
B)  Parties may not have legal counsel. 
C)  Parties may have legal counsel if they had legal counsel in mediation proceedings. Otherwise, legal counsel may not be used. 
D)  Individuals may have legal counsel, but corporations may not. 
E)  Corporations may have legal counsel, but individuals may not. 
A)  It is up to each of the parties. They may have legal counsel or they may not. 
B)  Parties may not have legal counsel. 
C)  Parties may have legal counsel if they had legal counsel in mediation proceedings. Otherwise, legal counsel may not be used. 
D)  Individuals may have legal counsel, but corporations may not. 
E)  Corporations may have legal counsel, but individuals may not.

Question 15

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, commercial contract disputes, and insurance liability claims. 
B)  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. 
C)  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. 
D)  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. 
E)  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. 
A)  Arbitration is used in medical malpractice cases, environmental disputes, commercial contract disputes, and insurance liability claims. 
B)  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. 
C)  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. 
D)  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. 
E)  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.

Question 16

"Sexual harassment ADR." Jenny works at the Mexican fast-food restaurant which is owned by an international company located in Mexico. Jenny is very angry with her supervisor, Sleaze, as he has been making inappropriate sexual comments to her and other employees. Jenny decides to sue and retains a lawyer, Brice. Brice talks with the owners of the restaurant and is informed that Jenny signed an agreement to mediate and also to arbitrate any claims. Jenny informed Brice about other employees who entered into such agreements and later complained of harassment. Brice 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. Brice also tells Jenny that, while he is not going to bring it up now, if they so choose, Brice and Jenny 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 Jenny 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. Brice tells Jenny that an option is to arbitrate and, if the outcome is bad at arbitration, file a court action in federal court. Brice says that the federal court judge would not consider an arbitrator's decision in making a determination.
-Assuming that Uniform Mediation Act provisions and the Federal Arbitration Act apply, can Brice obtain information regarding what occurred at previous mediations and arbitrations?

Accepted Answer

A)  Under federal law, Brice 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, Brice 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, Brice can get accounts of statements but not copies of written documents in regard to both mediations and arbitrations. 
D)  Under federal law, Brice can get copies of documents but not accounts of statements in regard to both mediations and arbitrations. 
E)  Federal law does not entitle Brice to any information from previous mediations or arbitrations. 
A)  Under federal law, Brice 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, Brice 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, Brice can get accounts of statements but not copies of written documents in regard to both mediations and arbitrations. 
D)  Under federal law, Brice can get copies of documents but not accounts of statements in regard to both mediations and arbitrations. 
E)  Federal law does not entitle Brice to any information from previous mediations or arbitrations.

Question 17

Bobby has a lawsuit in federal district court and asks Sally, a first year law student, about court-annexed ADR. What should Sally tell him?

Accepted Answer

A)  Mediation is required by law in federal district court. 
B)  Arbitration is required by law in federal district court. 
C)  Mediation is required by law in federal district court, but arbitration is not required. 
D)  Neither mediation nor arbitration is required by law in federal district court, but all litigants must present a summary of their positions to a case neutral. 
E)  Federal district courts vary on the approved ADR methods. 
A)  Mediation is required by law in federal district court. 
B)  Arbitration is required by law in federal district court. 
C)  Mediation is required by law in federal district court, but arbitration is not required. 
D)  Neither mediation nor arbitration is required by law in federal district court, but all litigants must present a summary of their positions to a case neutral. 
E)  Federal district courts vary on the approved ADR methods.

Question 18

A person must be a lawyer in order to perform arbitration.

Accepted Answer

A) True 
 B)False

Question 19

"Lawn maintenance." Bob and Susan ran a lawn maintenance company for several years. They, however, encountered a dispute regarding the allocation of profit and agreed to discontinue their business. They cannot 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. Bob suggested that they use a local lawyer named George to arbitrate the matter, and Susan agreed. Susan had some medical problems and requested that the arbitration be postponed for a short time. Bob objected to her request. George would not agree stating to Susan's request for a postponement stating that any arbitration proceeding must be heard within 30 days and that the time period was nearly over. George conducted the arbitration hearing. He refused to hear any evidence from any witnesses explaining that he only had the authority to hear testimony from Bob and Susan. Therefore, Susan was not able to present testimony of a property appraiser she had hired. George proceeded to rule in favor of Bob on all counts. Susan was very discouraged and discussed the situation with her friend Sally. Sally said "My goodness! Didn't you know that George and Bob play golf together every week, that Bob is married to George's cousin, and that Bob has loaned money to George in the past?" Susan immediately calls George and asks him about his connection with Bob. George acknowledges those connections. He tells Sally, however, that he was perfectly fair and that there is nothing she can do. The Federal Arbitration Act applies.
-Which of the following is accurate regarding George's refusal to hear testimony other than that presented by Bob and Susan?

Accepted Answer

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

Question 20

"Pet Flicks." Jill went to work as an independent contracting photographer for Exotic Pet Flicks, a company specializing in photographing exotic pets, such as monkeys and snakes, with their owners. The company's home office was in California, but Jill worked in Florida. Before she started work, Jill signed an agreement to arbitrate any dispute she had with the company. The arbitration agreement provided that in the event of a dispute, Jill would completely cover the cost of the arbitration; that she could only receive up to $150 in damages regardless of her claims, punitive or otherwise; and that any arbitration would be conducted at the company's home office. The agreement also provided that the arbitrator was not bound to strictly follow the official court rules of evidence. Jill signed the agreement because she really needed a job and liked animals. Her only previous animal photography experience, however, had been with cats and dogs. Jill's contract provided that she would be paid $100 per shoot and that the company would take steps to ensure her safety. One day she was called in to photograph a skunk and its owner. She was told by the receptionist at Exotic Pet Flicks that the skunk had been altered so that it could not spray. Jill felt safe. Unfortunately, the skunk had not been altered. Just as she was starting to shoot, the skunk became upset. It ran over, sprayed Jill, and in the resulting commotion, Jill's expensive camera was knocked over and broken. Plus, Jill's outfit was ruined and she stank for days. Jill wants to sue Exotic Pet Flicks for $5,000 to cover the cost of her camera, her clothing, and her general stinkiness for several days. Jill says that she cannot afford to pay for the arbitration.
-Will Jill likely be bound by the arbitration provision that she can only receive $150 in damages?

Accepted Answer

A)  Yes, she signed the agreement. 
B)  She will likely be bound only if the company can show that it has not made a substantial profit in the past 12 months. 
C)  If an arbitration award on that basis is appealed, a federal district judge would likely find the provision unenforceable. 
D)  She can avoid the provision if she testifies that she did not read it before signing the agreement. 
E)  She will likely be bound unless she can show that the company made a misrepresentation to her. 
A)  Yes, she signed the agreement. 
B)  She will likely be bound only if the company can show that it has not made a substantial profit in the past 12 months. 
C)  If an arbitration award on that basis is appealed, a federal district judge would likely find the provision unenforceable. 
D)  She can avoid the provision if she testifies that she did not read it before signing the agreement. 
E)  She will likely be bound unless she can show that the company made a misrepresentation to her.

Exam 4: Alternative Dispute Resolution

When does a private trial typically occur?

What is the primary ADR process used in federal district courts?

Which of the following is accurate regarding the speed and cost of ADR?

Which of the following is true regarding the Equal Employment Opportunity Commission (EEOC) position on mediation?

Which of the following is true regarding the remedy if a party does not abide by an agreement reached in mediation?

A(n) ______ is a provision in a contract that mandates that all disputes arising under the contract must be settled by arbitration.

What is a summary jury trial?

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

What did the U.S. Supreme Court rule in the case of Robert Gilmer v. Interstate/Johnson Lane Corporation involving whether a claim under the federal Age Discrimination in Employment Act was subject to arbitration?

Med-arb is a type of ADR method.

Which of the following is true regarding strikes under the National Labor Relations Act?

Which of the following is true regarding the use of legal counsel at arbitration proceedings?

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

Bobby has a lawsuit in federal district court and asks Sally, a first year law student, about court-annexed ADR. What should Sally tell him?

A person must be a lawyer in order to perform arbitration.

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

Filters