Deck 4: Alternative Dispute Resolution

Question 1

Which of the following is not one of the five steps to dispute resolution outlined by the United Parcel Service?

A) Open door policy
B) Facilitation
C) Management review
D) Peer review
E) Mandatory mediation

Answer 1

C

Question 2

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

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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

Question 5

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.

Question 6

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.

Question 7

Which of the following is accurate regarding the speed and cost of ADR as compared to litigation?

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 been conducted, so issues regarding the speed and cost of ADR as opposed to traditional litigation is unknown.

Question 8

Currently there are only a few countries belonging to the United Nations Convention on the Recognition of Enforcement of Foreign Arbitral Awards.

Question 9

Which of the following is not a form of ADR?

A) Mediation
B) Litigation
C) Negotiation
D) Arbitration
E) Summary jury trial

Question 10

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

Question 11

Arbitration is the primary ADR process used in federal district courts.

Question 12

One type of ADR method is med-arb.

Question 13

[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?

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 14

Private companies do not use mediation to resolve internal disputes with employees.

Question 15

Negotiation is a bargaining process in which disputing parties interact informally, but only with lawyers, to attempt to resolve their dispute.

Question 16

Mediators are always retired judges who can mediate based on their experiences on the bench.

Question 17

Negotiation in which each side seeks to maximize its own gain is called problem-solving negotiation.

Question 18

A summary jury trial leads to a binding jury verdict.

Question 19

Courts are generally critical and unsupportive of ADR methods.

Question 20

What was the result in the Case Opener in which an employee of Hooters complaining of sexual harassment attempted to avoid enforcement of a signed arbitration agreement?

A) The court fully enforced the arbitration agreement as it was written.
B) The court required that Hooters rewrite the arbitration agreement, and it was then enforced.
C) The court itself rewrote the arbitration agreement, and it was then enforced.
D) The court enforced the arbitration agreement in part, but required, contrary to the agreement, that Hooters provide the employee the specifics of its defenses at least 5 days before the commencement of the arbitration.
E) The arbitration agreement was not enforced by the court.

Question 21

[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.
Is Dominic correct that a federal law provides that arbitration agreements involving international businesses are unenforceable?

A) He is partially correct. The law only applies to any country not a party to the North American Free Trade Agreement.
B) He is partially correct. The law only applies to any country that has signed the North American Free Trade Agreement.
C) He is partially correct. The law only applies to European countries.
D) He is incorrect.
E) He is correct.

Question 22

Did Alan act properly in hearing the dispute?

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 23

[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?

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 24

[Pet Pics] Ari went to work as an independent contracting photographer for Wild Pet Pics, a company specializing in photographing exotic pets, such as monkeys and snakes, with their owners. The company's home office was in California, but Ari worked in Florida. Before he started work, Ari signed an agreement to arbitrate any dispute he had with the company. The arbitration agreement provided that in the event of a dispute, Ari would completely cover the cost of the arbitration; that he could only receive up to $150 in damages regardless of his 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. Ari signed the agreement because he really needed a job and liked animals. His only previous animal photography experience, however, had been with cats and dogs. Ari's contract provided that he would be paid $100 per shoot and that the company would take steps to ensure his safety. One day he was called in to photograph a skunk and its owner. He was told by the receptionist at Wild Pet Pics that the skunk had been altered so that it could not spray. Ari felt safe. Unfortunately, the skunk had not been altered. Just as he was starting to shoot, the skunk became upset. It ran towards Ari, sprayed Ari, and in the resulting commotion, Ari's expensive camera was knocked over and broken. Plus, Ari's clothes were ruined and he stank for days. Ari wants to sue Wild Pet Pics for $5,000 to cover the cost of his camera, his clothing, and his general smelliness for several days. Ari says that he cannot afford to pay for the arbitration.
How will the provision requiring that Ari pay the costs of the arbitration affect the agreement?

A) It will have no effect because Ari signed the agreement, and he is bound by it.
B) Ari will be bound by the provision because while under federal law he had three days in which to back out of the agreement, he did not do so.
C) Ari will be bound by the agreement unless he testifies that he did not read it.
D) Ari will be bound by the agreement unless he can prove that he was orally promised it would not be enforced.
E) The provision has the effect of weakening the agreement, as a court would likely refuse to enforce it.

Question 25

[Pet Pics] Ari went to work as an independent contracting photographer for Wild Pet Pics, a company specializing in photographing exotic pets, such as monkeys and snakes, with their owners. The company's home office was in California, but Ari worked in Florida. Before he started work, Ari signed an agreement to arbitrate any dispute he had with the company. The arbitration agreement provided that in the event of a dispute, Ari would completely cover the cost of the arbitration; that he could only receive up to $150 in damages regardless of his 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. Ari signed the agreement because he really needed a job and liked animals. His only previous animal photography experience, however, had been with cats and dogs. Ari's contract provided that he would be paid $100 per shoot and that the company would take steps to ensure his safety. One day he was called in to photograph a skunk and its owner. He was told by the receptionist at Wild Pet Pics that the skunk had been altered so that it could not spray. Ari felt safe. Unfortunately, the skunk had not been altered. Just as he was starting to shoot, the skunk became upset. It ran towards Ari, sprayed Ari, and in the resulting commotion, Ari's expensive camera was knocked over and broken. Plus, Ari's clothes were ruined and he stank for days. Ari wants to sue Wild Pet Pics for $5,000 to cover the cost of his camera, his clothing, and his general smelliness for several days. Ari says that he cannot afford to pay for the arbitration.
Is the arbitration agreement that Ari signed void on the grounds that the federal rules of evidence would not have to be followed by the arbitrator in the case?

A) No, generally the rules of evidence that are required to be followed by trial courts are relaxed during an arbitration.
B) It depends on whether the arbitrator is trained in accepting evidence in the case.
C) It will depend on whether or not the arbitrator is a former judge.
D) It will depend on whether the parties understood the content of the arbitration agreement.
E) Yes, arbitrators are bound by the rules of evidence in all cases.

Question 26

Which of the following is true regarding arbitration in Brazil?

A) Brazilian lawmakers have reformed several articles in the Brazilian Civil Code to increase the practice of arbitration.
B) Parties must sign an "arbitration commitment" recognizing that the parties agree that any decision must be appealed to the judiciary branch of government.
C) Because of a commitment by legislators to reduce arbitrations, parties may only arbitrate family law matters.
D) Because of a commitment by legislators to reduce arbitrations, parties may only arbitrate corporate law matters.
E) Arbitration is outlawed in Brazil.

Question 27

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

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 28

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

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 29

In the United States Supreme Court case Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, provided in part in the text, the Court was trying to decide what in regards to an international transaction?

A) The Court was deciding whether or not American courts have jurisdiction to hear an arbitration agreement between different international companies.
B) The Court was determining whether or not an arbitration agreement to resolve antitrust claims through a binding arbitration agreement between the parties should be upheld.
C) Whether or not Mitsubishi had the right to appeal in an American court.
D) The Court did not hear the case because it determined there was not federal substantive law in the area of international arbitration agreements.
E) The Court ruled that the arbitration clause at issue should be determined by a Japanese court, not an American court, since that was where Mitsubishi was located.

Question 30

[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.
Was Dominic correct when he told Naomi that if she lost at the arbitration level, a federal judge would consider the case anew without consideration of the arbitration agreement?

A) Yes, because an action in court is considered completely separate from an arbitration proceeding.
B) Yes, but only if Naomi filed an "Intent to Seek Further Relief" form with the arbitrator.
C) No, because the arbitration agreement would completely bar Naomi's ability to file a court action.
D) No, because in a later court action, a federal judge in district court would only reverse an arbitrator's decision for certain reasons such as that the arbitrator displayed bias or corruption.
E) Dominic is correct only because an international company is involved.

Question 31

[Pet Pics] Ari went to work as an independent contracting photographer for Wild Pet Pics, a company specializing in photographing exotic pets, such as monkeys and snakes, with their owners. The company's home office was in California, but Ari worked in Florida. Before he started work, Ari signed an agreement to arbitrate any dispute he had with the company. The arbitration agreement provided that in the event of a dispute, Ari would completely cover the cost of the arbitration; that he could only receive up to $150 in damages regardless of his 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. Ari signed the agreement because he really needed a job and liked animals. His only previous animal photography experience, however, had been with cats and dogs. Ari's contract provided that he would be paid $100 per shoot and that the company would take steps to ensure his safety. One day he was called in to photograph a skunk and its owner. He was told by the receptionist at Wild Pet Pics that the skunk had been altered so that it could not spray. Ari felt safe. Unfortunately, the skunk had not been altered. Just as he was starting to shoot, the skunk became upset. It ran towards Ari, sprayed Ari, and in the resulting commotion, Ari's expensive camera was knocked over and broken. Plus, Ari's clothes were ruined and he stank for days. Ari wants to sue Wild Pet Pics for $5,000 to cover the cost of his camera, his clothing, and his general smelliness for several days. Ari says that he cannot afford to pay for the arbitration.
Will Ari likely be bound by the arbitration provision that he can only receive $150 in damages?

A) Yes, he signed the agreement.
B) He 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) He can avoid the provision if he testifies that he did not read it before signing the agreement.
E) He will likely be bound unless he can show that the company made a misrepresentation to him.

Question 32

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

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 33

[Pet Pics] Ari went to work as an independent contracting photographer for Wild Pet Pics, a company specializing in photographing exotic pets, such as monkeys and snakes, with their owners. The company's home office was in California, but Ari worked in Florida. Before he started work, Ari signed an agreement to arbitrate any dispute he had with the company. The arbitration agreement provided that in the event of a dispute, Ari would completely cover the cost of the arbitration; that he could only receive up to $150 in damages regardless of his 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. Ari signed the agreement because he really needed a job and liked animals. His only previous animal photography experience, however, had been with cats and dogs. Ari's contract provided that he would be paid $100 per shoot and that the company would take steps to ensure his safety. One day he was called in to photograph a skunk and its owner. He was told by the receptionist at Wild Pet Pics that the skunk had been altered so that it could not spray. Ari felt safe. Unfortunately, the skunk had not been altered. Just as he was starting to shoot, the skunk became upset. It ran towards Ari, sprayed Ari, and in the resulting commotion, Ari's expensive camera was knocked over and broken. Plus, Ari's clothes were ruined and he stank for days. Ari wants to sue Wild Pet Pics for $5,000 to cover the cost of his camera, his clothing, and his general smelliness for several days. Ari says that he cannot afford to pay for the arbitration.
What effect will the provision that the arbitration be conducted in the company's home state have on the agreement?

A) None; only because an employee/employer relationship is involved.
B) None because Ari 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 Ari did not read the agreement before he signed it.
E) A court may be more likely to not enforce the agreement because of the distance and expense involved.

Question 34

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

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 35

There are two types of negotiations that parties can enter into, they are:

A) problem-solving negotiations and neutral negotiations
B) neutral negotiations and adversarial negotiations
C) golden rule negotiations and problem-solving negotiations
D) adversarial negotiations and problem-solving negotiations
E) golden rule negotiations and adversarial negotiations

Question 36

[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.
Assuming the Uniform Mediation Act applies, did Dominic correctly tell Naomi that mediation is nearly the same as arbitration?

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 37

What is the arbitrator's decision called?

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

Question 38

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

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 39

[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?

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 40

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?

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 41

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?

A) The arbitration clause is enforceable and binding on the EEOC.
B) 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.
C) 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.
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 Business Corp in the past and that Business Corp. is a repeat offender.

Question 42

Which of the following describes the role of arbitration and mediation in e-commerce cases?

A) Increasingly, litigants are using arbitration, but not mediation, to resolve disputes in e-commerce cases.
B) Increasingly, litigants are using mediation, but not arbitration, to resolve disputes in e-commerce cases.
C) Increasingly, litigants are using arbitration and mediation to resolve disputes in e-commerce cases.
D) Arbitration is allowed by federal law in e-commerce cases, but mediation is not allowed.
E) Mediation is allowed by federal law in e-commerce cases, but arbitration is not allowed.

Question 43

In which of the following do parties select a neutral third party and explain their respective positions to this neutral, who then evaluates the strengths and weaknesses of the case?

A) Summary jury trial
B) Med-arb
C) Early neutral case evaluation
D) Private trials
E) Neutral submission

Question 44

In what situations would a court most often strike down an arbitration clause as unconscionable?

A) Contracts between merchants
B) Contracts between corporations
C) Contracts between businesses and their vendors
D) Consumer and employment contracts
E) Courts never strike down arbitration clauses as unconscionable

Question 45

Med-arb is which type of dispute resolution process?

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 46

________ is a dispute resolution process in which the parties agree to mediation and if the mediation is unsuccessful on one or more points, the parties move on to arbitration.

A) Mini jury trial
B) Summary jury trial
C) Med-arb
D) Factual summary hearing
E) Litigated dispute trial

Question 47

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

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

Question 48

If a party does not abide by an agreement reached in mediation, which of the following is true of the remedy?

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 49

Which of the following is helping more and more litigants in resolving e-commerce disputes?

A) United States Supreme Court
B) The Patent and Trademark Office
C) Arbitrators International
D) National Arbitration Forum
E) International Forum of ADR

Question 50

The 1998 ________ states that all federal district court litigants must consider the use of ADR at some stage of the litigation.

A) Alternative Dispute Resolution Act
B) Federal Court Early Intervention Act
C) Dispute in Litigation Act
D) Resolution Dispute Act
E) Peacekeepers Act

Question 51

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, what did the U.S. Supreme Court rule?

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 52

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?

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.

Question 53

A provision in a contract that mandates that all disputes arising under the contract must be settled by arbitration is called a[n] ________.

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

Question 54

What is a criticism of arbitration, according to the text?

A) That arbitration is more expensive than court litigation.
B) That companies and employers can more easily hide disputes.
C) That it is too easy to get an arbitration award reversed by a judge.
D) That parties have less control through the arbitration process than through a judicial action.
E) That arbitration actions are less private than judicial actions.

Question 55

Mark and Elizabeth have a dispute over who breached a contract between their respective companies. The two hire a referee to offer a legally binding judgment in a dispute. What form of ADR is this?

A) Private trial
B) Summary jury trail
C) Negotiated settlement
D) Mediation
E) Arbitration

Question 56

Many private firms have started to offer private jury trials and hire jurors who are often better educated than the typical juror. Many of these jurors have had several experiences serving on multiple private juries. Which of these is the biggest criticism of a private trial?

A) Not all companies understand how the private jury trial works so they do not even use the system.
B) There is no way to appeal the decision of the private jury.
C) Most courts do not value private jury trials because they believe the private jury trial supplants their authority.
D) Not all companies can afford the private trial and if they can, critics believe this type of ADR will result in a two-tiered system of justice.
E) Many companies will only use this process if they actually know the jurors ahead of presenting evidence.

Question 57

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?

A) The court should uphold the agreement prohibiting class action arbitration.
B) 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.
C) The court should uphold the arbitration agreement itself but strike the provision prohibiting class action arbitration.
D) 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.
E) 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.

Question 58

A ________ trial is an abbreviated trial that leads to a non-binding jury verdict.

A) summary jury
B) jury stipulation
C) verdict of the jury
D) completed jury
E) mediation jury

Question 59

A ________ allows the parties to submit a specific dispute involving a contractual provision to arbitration if a 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 60

Japan uses what types of ADR techniques?

A) Compromise, conciliation, and arbitration
B) Conciliation and arbitration, but not compromise
C) Arbitration and mediation only
D) Compromise, conciliation, mediation, but not arbitration
E) ADR is now allowed under Japanese culture

Question 61

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

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) Both the law in general and the law of arbitration operate within a fixed set of rules and 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 62

[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 stating that all work-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?

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

Question 63

Awards obtained under the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards:

A) Are always upheld by all courts.
B) Can never be enforced in US courts.
C) Are recognized by most courts unless there is a defense to enforcing the award.
D) Are first addressed at the United Nations for fairness.
E) Are subject to international courts that review all awards.

Question 64

[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.
Which of the following would typically not be part of a mediation between Sofia and Renata?

A) Both parties agree to the selection of the mediator.
B) Both parties provide their view of the case to the mediator.
C) The mediator assists in finding a resolution.
D) The mediator makes a binding ruling.
E) The mediator assists in drafting the contract.

Question 65

[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 stating that all work-related claims must be resolved through arbitration.
Assume Emilia opted to arbitrate her claim against MegaTron, and the arbitrator awarded her $2,000,000 in punitive damages. MegaTron's officers were appalled and filed a lawsuit seeking to set aside the arbitrator's award. On what basis could a court overturn the arbitrator's award?

A) That Emilia may have been lying when she testified during the arbitration.
B) That Emilia did not want to arbitrate.
C) That the arbitrator misused his authority in making the award.
D) That the parties agreed in advance not to give closing statements.
E) That the arbitrator told the parties in advance that he worked at MegaTron thirty years ago and disclosed this fact in writing.

Question 66

[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?

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 67

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

A) Arbitration is used in employment, 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 68

[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.
If Coleman and Jade agree to arbitrate their dispute with the American Arbitration Association, which of the following statements would be false about their selection of an arbitrator?

A) The American Arbitration Association will send the parties a list of potential arbitrators.
B) A retired CEO is not permitted to arbitrate because she has not attended law school.
C) A person with no experience in running a business can still be an arbitrator.
D) The general qualifications for being an arbitrator are honesty, impartiality, and subject-matter competence.
E) Arbitrators are expected to follow the Arbitrator's Code of Ethics.

Question 69

[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.
If Coleman decides to arbitrate, which of the following would most likely be false?

A) The dispute would be resolved quicker than litigation.
B) Coleman would not be allowed to bring any witnesses.
C) Coleman would spend less money on arbitration than if he engaged in litigation.
D) Coleman's assistant, a professional athlete, could testify about the poor quality of the shoes provided by Jade.
E) Coleman and Jade would be more likely to continue a business relationship after arbitration than if they engaged in litigation.

Question 70

[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.
When addressing which tips would be helpful in creating a binding arbitration clause, the text authors suggest what?

A) The clause should treat both parties as if they understand the law and should be signed in front of a notary.
B) The clause should always dictate that the arbitration will be performed in a certain location so that both parties know.
C) The clause should be bilateral, clear, state which party pays the fees, and specify how the arbitrator will be selected.
D) The clause should allow that if the arbitration award is not approved by both parties, the parties can then mediate the dispute instead.
E) The clause should always limit the remedies the parties can receive.

Question 71

Which of the following is true regarding the 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 72

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?

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 73

[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.
If Coleman had signed a submission agreement, but subsequently decides to file a lawsuit against Jade, would Coleman still be required to arbitrate?

A) No, because a party has a right to file a lawsuit.
B) Yes, because there are more advantages to arbitration.
C) No, because the distribution contract between Coleman and Jade did not include a binding arbitration agreement.
D) Yes, because he entered into a submission agreement.
E) No, because a submission agreement is not a binding arbitration agreement.

Question 74

[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 stating that all work-related claims must be resolved through arbitration.
If the EEOC filed an enforcement lawsuit based on the allegations of Emilia and other employees, what would a court likely do?

A) Dismiss the lawsuit, because of Emilia's poor performance.
B) Dismiss the lawsuit because of the binding arbitration clause in Emilia's employment contract.
C) Allow the lawsuit to move forward, as long as Emilia gets no relief whatsoever.
D) Allow the lawsuit to move forward because the EEOC is not a party to the employment contract, and it has the authority to pursue relief for Emilia regardless of how the employer and employee agreed to resolve their disputes.
E) Allow the lawsuit because arbitration clauses in employment contracts are unconscionable.

Question 75

[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.
Is Jade correct that they are required to arbitrate their dispute?

A) Yes, Jade demanded in writing that they arbitrate their dispute.
B) Yes, but only because Jade's written demand had a thirty day deadline.
C) No, a party is never required to arbitrate.
D) No, arbitration is voluntary and Coleman never signed an agreement to arbitrate their disputes.
E) No, a party cannot enter a contract that requires them to arbitrate instead of filing a lawsuit.

Question 76

[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?

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

Question 77

[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 true for both arbitrations and trials?

A) The decision of a judge is legally binding, but the decision of an arbitrator is not.
B) Cross-examination of witnesses occurs in trials, but not in arbitrations.
C) Parties are required to have a lawyer in both arbitrations and trials.
D) The parties may introduce witnesses and documentation, may cross-examine witnesses, and may offer closing statements.
E) Closing statements are not permitted during arbitration.

Question 78

[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.
Gordon advises that they seek mediation, and, if mediation is unsuccessful, then they should request arbitration or file a lawsuit. However, Sofia is concerned that any statements she makes at mediation could be used against her. What should Gordon tell her?

A) Statements made in mediation can be used in arbitration or trial.
B) Statements made in mediation can be used in trial, but not in arbitration.
C) Statements made in mediation can be used at trial, but only as a means of introducing evidence not produced by the parties to the lawsuit.
D) Statements made in mediation can be used in arbitration, but not trial.
E) Statements made in mediation cannot be used in arbitration or trial.

Question 79

When can an arbitration award be set aside?

A) If the parties do not like the outcome of the arbitrator's award.
B) If the award resulted from fraud, corruption or the arbitrator misbehaved in a way that prejudiced the rights of the parties.
C) If the courts do not like the arbitrator that the parties picked.
D) If the arbitrator was a lawyer and not a judge.
E) If the arbitrator was a judge and not a lawyer.

Question 80

[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.
Sofia tells Gordon that she wants to file a lawsuit against Renata, and then engage in mediation. Gordon tells her that she must mediate before filing a lawsuit. Is Gordon correct?

A) Yes, once a lawsuit is initiated, she cannot engage in mediation.
B) No, many courts have mediation programs.
C) No, every court will mandate mediation after a lawsuit is filed.
D) Yes, it is a waste of money to file a lawsuit before mediation.
E) No, the Federal Arbitration Act mandates that mediation must occur.