Question 1

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

Accepted Answer

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

Question 2

The term ADR refers to the resolution of legal disputes through methods other than litigation.

Accepted Answer

A) True 
 B)False

Question 3

"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.
-Would the arbitration agreement be deemed void because it provided that the arbitrator was not bound by the federal rules of evidence?

Accepted Answer

A)  Yes. 
B)  Only if the arbitrator was not also a lawyer. 
C)  Only if the arbitrator was a lawyer. 
D)  The agreement to arbitrate would be upheld so long as the arbitrator agreed to at least apply federal hearsay rules. 
E)  No, because the rules of evidence applicable in a trial are typically relaxed in arbitration. 
A)  Yes. 
B)  Only if the arbitrator was not also a lawyer. 
C)  Only if the arbitrator was a lawyer. 
D)  The agreement to arbitrate would be upheld so long as the arbitrator agreed to at least apply federal hearsay rules. 
E)  No, because the rules of evidence applicable in a trial are typically relaxed in arbitration.

Question 4

Set forth the reasons by the Federal Arbitration Act under which an arbitrator's award may be set aside.

Accepted Answer

1. The award was the result of corruptio

Question 5

According to the text, positive points of arbitration involve(s) which of the following?

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 6

Which of the following is true regarding private trials?

Accepted Answer

A)  They may allow defendants to hide wrongdoing from the public. 
B)  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. 
C)  They are generally slower than regular litigation. 
D)  They are a form of state or federal litigation closed to the public to protect the identity of litigants in certain sensitive situations. 
E)  They unfairly discriminate against corporations because by law in some cases corporations must pay the costs involved for indigent plaintiffs. 
A)  They may allow defendants to hide wrongdoing from the public. 
B)  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. 
C)  They are generally slower than regular litigation. 
D)  They are a form of state or federal litigation closed to the public to protect the identity of litigants in certain sensitive situations. 
E)  They unfairly discriminate against corporations because by law in some cases corporations must pay the costs involved for indigent plaintiffs.

Question 7

Which of the following is an extension of negotiation?

Accepted Answer

A)  Arbitration 
B)  Minitrials 
C)  Neutral case evaluations 
D)  Mediation 
E)  Private trials 
A)  Arbitration 
B)  Minitrials 
C)  Neutral case evaluations 
D)  Mediation 
E)  Private trials

Question 8

What are four advantages of ADR over traditional litigation as set forth in the text?

Accepted Answer

(1) It is usually faster and cheaper.
(2

Question 9

Which of the following is true regarding the federal appellate court system's use of ADR?

Accepted Answer

A)  All federal courts use arbitration but few have mediation programs. 
B)  While ADR is popular at the district court level, few federal appellate courts use it. 
C)  Almost all federal circuit courts of appeal have mediation programs underway. 
D)  By law ADR is outlawed at the federal appellate court level. 
E)  All federal appellate courts use early neutral case evaluation but none use mediation. 
A)  All federal courts use arbitration but few have mediation programs. 
B)  While ADR is popular at the district court level, few federal appellate courts use it. 
C)  Almost all federal circuit courts of appeal have mediation programs underway. 
D)  By law ADR is outlawed at the federal appellate court level. 
E)  All federal appellate courts use early neutral case evaluation but none use mediation.

Question 10

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 11

Which of the following is true regarding the Uniform Mediation Act?

Accepted Answer

A)  There is no Uniform Mediation Act because of the controversy involved in attempting to negotiate such an act. 
B)  It provides for a mediation privilege but does not specifically require that mediators identify conflicts of interest, and all states have adopted it. 
C)  It does not provide for a mediation privilege but does specifically require that mediators identify conflicts of interest, and all states have adopted it. 
D)  It provides for a mediation privilege but does not specifically require that mediators identify conflicts of interest, and less than half the states have adopted it. 
E)  It provides for a mediation privilege, mediators are required to identify any conflicts of interest, and less than half the states have adopted it. 
A)  There is no Uniform Mediation Act because of the controversy involved in attempting to negotiate such an act. 
B)  It provides for a mediation privilege but does not specifically require that mediators identify conflicts of interest, and all states have adopted it. 
C)  It does not provide for a mediation privilege but does specifically require that mediators identify conflicts of interest, and all states have adopted it. 
D)  It provides for a mediation privilege but does not specifically require that mediators identify conflicts of interest, and less than half the states have adopted it. 
E)  It provides for a mediation privilege, mediators are required to identify any conflicts of interest, and less than half the states have adopted it.

Question 12

A person must have a law degree in order to be a mediator.

Accepted Answer

A) True 
 B)False

Question 13

A summary jury trial leads to a binding jury verdict.

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

What type of dispute resolution process is med-arb?

Accepted Answer

A)  A process in which the parties agree to start out in mediation and, if the mediation is unsuccessful on one or more points, to move on to arbitration. 
B)  A process in which the parties agree to start out in arbitration and, if the arbitration is unsuccessful on one or more points, move on to court-annexed ADR. 
C)  A process in which the parties agree to start in mediation and move to litigation if the mediation is unsuccessful. 
D)  A process in which the parties agree to start in arbitration and move to litigation if the mediation is unsuccessful. 
E)  A special type of blended mediation and arbitration applicable only in the medical malpractice arena. 
A)  A process in which the parties agree to start out in mediation and, if the mediation is unsuccessful on one or more points, to move on to arbitration. 
B)  A process in which the parties agree to start out in arbitration and, if the arbitration is unsuccessful on one or more points, move on to court-annexed ADR. 
C)  A process in which the parties agree to start in mediation and move to litigation if the mediation is unsuccessful. 
D)  A process in which the parties agree to start in arbitration and move to litigation if the mediation is unsuccessful. 
E)  A special type of blended mediation and arbitration applicable only in the medical malpractice arena.

Question 16

Which of the following was the result at the U.S. Supreme Court level in Circuit City v. Saint Clair Adams, the case in the text involving whether arbitration applies in employment contracts?

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 17

Which of the following was the result at the Supreme Court level in Mitsubishi Motors Corp. v. Soler, the case in the text involving whether an American court may enforce an agreement to resolve antitrust claims by arbitration when that agreement arises from an international transaction?

Accepted Answer

A)  The Court recognized that the arbitration agreement should be enforced. 
B)  The Court refused to enforce the agreement because international parties were involved. 
C)  The Court refused to enforce the agreement because antitrust claims were involved. 
D)  The Court refused to enforce the agreement because there is a lack of federal substantive law supporting the enforcement of agreements to arbitrate. 
E)  The Court ruled that the arbitration agreement would be upheld but only if the parties conducted the arbitration in Japan, the home of Mitsubishi. 
A)  The Court recognized that the arbitration agreement should be enforced. 
B)  The Court refused to enforce the agreement because international parties were involved. 
C)  The Court refused to enforce the agreement because antitrust claims were involved. 
D)  The Court refused to enforce the agreement because there is a lack of federal substantive law supporting the enforcement of agreements to arbitrate. 
E)  The Court ruled that the arbitration agreement would be upheld but only if the parties conducted the arbitration in Japan, the home of Mitsubishi.

Question 18

"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 the Uniform Mediation Act provisions apply, did Brice correctly tell Jenny that mediation is nearly the same as arbitration?

Accepted Answer

A)  No, he was incorrect. There are major differences between mediation and arbitration. 
B)  He was correct because the only difference between the two involves the length of the proceeding. 
C)  He was correct because the only difference between the two involves cost. 
D)  He was correct because the only difference between the two involves whether a court reporter is present. 
E)  He was correct because the only difference between the two involves the type of evidence that may be considered. 
A)  No, he was incorrect. There are major differences between mediation and arbitration. 
B)  He was correct because the only difference between the two involves the length of the proceeding. 
C)  He was correct because the only difference between the two involves cost. 
D)  He was correct because the only difference between the two involves whether a court reporter is present. 
E)  He was correct because the only difference between the two involves the type of evidence that may be considered.

Question 19

If a contract does not provide for arbitration, parties may submit a specific dispute involving a contractual provision to arbitration through the use of a ______.

Accepted Answer

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

Question 20

What types of ADR techniques exist in Japan?

Accepted Answer

A)  Compromise and conciliation, but not arbitration 
B)  Conciliation and arbitration, but not compromise 
C)  Arbitration, but not compromise or conciliation 
D)  Compromise, conciliation, and arbitration 
E)  ADR is outlawed in Japan 
A)  Compromise and conciliation, but not arbitration 
B)  Conciliation and arbitration, but not compromise 
C)  Arbitration, but not compromise or conciliation 
D)  Compromise, conciliation, and arbitration 
E)  ADR is outlawed in Japan

Exam 4: Alternative Dispute Resolution

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

The term ADR refers to the resolution of legal disputes through methods other than litigation.

Set forth the reasons by the Federal Arbitration Act under which an arbitrator's award may be set aside.

According to the text, positive points of arbitration involve(s) which of the following?

Which of the following is true regarding private trials?

Which of the following is an extension of negotiation?

What are four advantages of ADR over traditional litigation as set forth in the text?

Which of the following is true regarding the federal appellate court system's use of ADR?

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

Which of the following is true regarding the Uniform Mediation Act?

A person must have a law degree in order to be a mediator.

A summary jury trial leads to a binding jury verdict.

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

What type of dispute resolution process is med-arb?

Which of the following was the result at the U.S. Supreme Court level in Circuit City v. Saint Clair Adams, the case in the text involving whether arbitration applies in employment contracts?

Which of the following was the result at the Supreme Court level in Mitsubishi Motors Corp. v. Soler, the case in the text involving whether an American court may enforce an agreement to resolve antitrust claims by arbitration when that agreement arises from an international transaction?

If a contract does not provide for arbitration, parties may submit a specific dispute involving a contractual provision to arbitration through the use of a ______.

What types of ADR techniques exist in Japan?

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

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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

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Corporations: Directors, Officers, and Shareholders

Corporations: Mergers, Consolidations, Terminations

Corporations: Securities and Investor Protection

Employment and Labor Law

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