Deck 4: Alternative Dispute Resolution

Question 1

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

Answer 1

False

Question 2

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.

Answer 2

True

Question 3

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

Answer 3

False

Question 4

One type of ADR method is med-arb.

Question 5

Which of the following is an extension of negotiation?

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

Question 6

Corporations should never use arbitration in international disputes because the results are almost always unenforceable.

Question 7

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

A)It is usually slower but cheaper.
B)It is usually slower and more expensive.
C)It is usually faster but more expensive.
D)It is usually faster and 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

[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 provisions and the Federal Arbitration Act apply?

A)Federal law does not entitle Dominic to any information introduced by the parties during previous mediations or arbitrations.
B)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.
C)Under federal law,Dominic can get copies of documents but not accounts of statements in regard to both mediations and arbitrations.
D)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.
E)Under federal law,Dominic can get accounts of statements but not copies of written documents in regard to both mediations and arbitrations.

Question 9

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

Question 10

Which of the following is a type of ADR?

A)Consultation
B)Case analysis
C)Mediation
D)Focus grouping
E)Case argument

Question 11

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

A)The court itself rewrote the arbitration agreement,and it was then enforced.
B)The court fully enforced the arbitration agreement as it was written.
C)The arbitration agreement was not enforced by the court.
D)The court required that Hooters rewrite the arbitration agreement,and it was then enforced.
E)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.

Question 12

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

Question 13

Courts are generally critical and unsupportive of ADR methods.

Question 14

A summary jury trial leads to a binding jury verdict.

Question 15

Courts can use ADR to resolve particular disputes within a case;rather than resolving the entire case at once.

Question 16

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

Question 17

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

Question 18

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

Question 19

In order to be a mediator,a person must have a law degree.

Question 20

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

Question 21

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

Question 22

Assuming the Uniform Mediation Act provisions apply,did Dominic correctly tell Naomi that mediation is nearly the same as arbitration?

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

Question 23

Which of the following was the result at the Supreme Court level in Mitsubishi Motors Corp.v.Soler Chrysler-Plymouth,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?

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

Question 24

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 does not apply in employment contracts but that the common law of arbitration applies in employment contracts.
B)The Court ruled that the Federal Arbitration Act applies in employment contracts.
C)The Court ruled that neither the Federal Arbitration Act nor the common law of arbitration applies in employment contracts.
D)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.
E)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.

Question 25

How will the provision requiring that Ari pay the costs of the arbitration affect the agreement?

A)Ari will be bound by the agreement unless he can prove that he was orally promised it would not be enforced.
B)The provision has the effect of weakening the agreement,as a court would likely refuse to enforce it.
C)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.
D)Ari will be bound by the agreement unless he testifies that he did not read it.
E)It will have no effect because Ari signed the agreement,and he is bound by it.

Question 26

In which situation would an arbitrator's decision be called an "award"?

A)Always.
B)Only if a money award is involved.
C)Only if both parties had lawyers because that terminology makes it easier for the lawyers to be paid.
D)Never.
E)Only if one party completely wins and there is no split decision.

Question 27

What effect will the provision that the arbitration be conducted in the company's home state have on the agreement?

A)None because Ari freely signed the agreement.
B)None;only because an employee/employer relationship is involved.
C)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.
D)None because a domestic company,not an international one,is involved.
E)A court may be more likely to not enforce the agreement because of the distance and expense involved.

Question 28

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

A)The EEOC discourages the mediation of employment discrimination claims.
B)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.
C)The EEOC discourages the mediation of employment discrimination claims in age discrimination cases but not in sexual harassment cases.
D)The EEOC encourages the mediation of employment discrimination claims.
E)The EEOC discourages the mediation of employment discrimination claims in sexual harassment cases but not in age discrimination cases.

Question 29

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

A)Only if the arbitrator was not also a lawyer.
B)Yes.
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 30

[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 was incorrect regarding the time in which a hearing must be held because under the Federal Arbitration Act,the applicable time period is 60 days.
B)Alan was probably wrong in refusing the continuance,and that could present a basis upon which to set aside his award.
C)Alan's statement that a hearing must be held within 30 days was correct.
D)Alan was prohibited by law from granting a continuance over Jae's objection.
E)Under the Federal Arbitration Act,an arbitration proceeding may not be postponed based upon illness.

Question 31

Did Alan act properly in hearing the dispute?

A)He should have revealed that he had received loans from Jae,but he had no obligation to reveal other information.
B)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.
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 acted properly because he only had to reveal the information at issue if Lydia had directly asked about it.
E)He acted properly because it is presumed that arbitrators are unbiased regardless of their relationship with a party.

Question 32

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

A)Arbitration is generally less expensive than litigation.
B)Arbitrations prohibit the use of legal counsel.
C)Arbitrations can be set aside on appeal for the same reasons as court judgments.
D)Arbitrators are bound by the same rules as judges in applying precedent.
E)Arbitrators are assigned so parties do not have to pick them.

Question 33

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

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

Question 34

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

A)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.
B)A union has no obligation to inquire into mediation before beginning a strike for any reason.
C)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.
D)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.
E)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.

Question 35

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)Dominic is correct only because an international company is involved.
B)Yes,because an action in court is considered completely separate from an arbitration proceeding.
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)Yes,but only if Naomi filed an "Intent to Seek Further Relief" form with the arbitrator.

Question 36

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

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

Question 37

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

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

Question 38

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

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

Question 39

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)Arbitration is outlawed in Brazil.
E)Because of a commitment by legislators to reduce arbitrations,parties may only arbitrate corporate law matters.

Question 40

Will Ari likely be bound by the arbitration provision that he can only receive $150 in damages?

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

Question 41

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

Question 42

A clause in which the terms are "manifestly unfair or oppressive and are dictated by a dominant party" is called a[n] clause.

A)Outrageous
B)Unsupportable
C)Prohibitive
D)Unconscionable
E)Unreasonable

Question 43

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

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

Question 44

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

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

Question 45

What types of ADR techniques exist in Japan?

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

Question 46

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

A)Mediation is required by law in federal district court,but arbitration is not required.
B)Federal district courts vary on the approved ADR methods.
C)Arbitration is required by law in federal district court.
D)Mediation is required by law in federal district court.
E)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.

Question 47

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

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

Question 48

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

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

Question 49

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 in arbitration and move to litigation if the mediation is unsuccessful.
C)A process in which the parties agree to start in mediation and move to litigation if the mediation is unsuccessful.
D)A special type of blended mediation and arbitration applicable only in the medical malpractice arena.
E)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.

Question 50

Mediation programs are underway in ________ of state courts.

A)More than 75%
B)More than one-half
C)Less than one-half
D)Less than 10%
E)More than one-third

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

Question 52

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

Question 53

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

Question 54

What is a summary jury trial?

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

Question 55

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

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

Question 56

When would a private trial usually occur?

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

Question 57

Which of the following is an ADR method in which a referee is selected and paid by the disputing parties to offer a legally binding judgment in a dispute?

A)Neutral submission
B)Private trial
C)Summary jury trial
D)Minitrial
E)Early neutral case evaluation

Question 58

Which of the following is generally true regarding minitrials?

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

Question 59

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

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

Question 60

Which of the following is true regarding private trials?

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

Question 61

If Coleman had signed a Submission Agreement,but subsequently decides to file a lawsuit against Jade,would Coleman still be required to arbitrate?

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

Question 62

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

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

Question 63

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

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

Question 64

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

Question 65

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,the Federal Arbitration Act mandates that mediation must occur.
D)Yes,it is a waste of money to file a lawsuit before mediation.
E)No,every court will mandate mediation after a lawsuit is filed.

Question 66

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 trial,but not in arbitration.
B)Statements made in mediation cannot be used in arbitration or trial.
C)Statements made in mediation can be used in arbitration,but not trial.
D)Statements made in mediation can be used in arbitration or trial.

Question 67

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

Question 68

Which of the following is true for both arbitrations and trials?

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

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

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

Question 70

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

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

Question 71

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)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.
C)Allow the lawsuit to move forward,as long as Emilia gets no relief whatsoever.
D)Dismiss the lawsuit because of the binding arbitration clause in Emilia's employment contract.
E)Allow the lawsuit because arbitration clauses in employment contracts are unconscionable.

Question 72

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

Question 73

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

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

Question 74

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

Question 75

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

Question 76

Which of the following is an advantage of ADR over traditional litigation as set forth in the text?

A)It is usually faster but not cheaper.
B)Because many forms of ADR are more adversarial than litigation,the parties are rarely able to preserve a business relationship.
C)ADR is not flexible and cannot be restructured to meet the parties' needs.
D)A business may wish to avoid setting a precedent through a court decision.

Question 77

Under the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards,which of the following is true regarding defenses to an arbitration award?

A)The only three recognized defenses are 1)that the arbitrator acted outside the scope of her or his authority when making the decision;2)that one of the parties to the agreement did not have the authority to enter into a legal contract;and 3)that the losing party did not receive notice of the arbitration.
B)The only defense recognized is that the losing party did not receive notice of the arbitration.
C)The only two recognized defenses are 1)that the arbitrator acted outside the scope of her or his authority when making the decision and 2)that one of the parties to the agreement did not have the authority to enter into a legal contract.
D)The only two recognized defenses are 1)that one of the parties to the agreement did not have the authority to enter into a legal contract and 2)that the losing party did not receive notice of the arbitration.
E)There are no recognized defenses.

Question 78

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

A)There are two approaches,adversarial negotiation and problem-solving negotiation.
B)There is only one approach to negotiation,adversarial.
C)There is only one approach to negotiation,problem-solving.
D)The ADR process known as "negotiation" is the same as the ADR process known as "mediation."
E)There is no form of ADR known as negotiation.

Question 79

According to Exhibit 4-2 of the text,which of these tips would not be helpful in creating a binding arbitration clause.

A)The clause should spell out that the employer must pay the costs of arbitration.
B)The clause should treat both parties fairly.
C)The clause should specify how the arbitrator will be selected.
D)The clause should be clear and unmistakable.
E)The clause should require one of the parties to arbitrate,but the same requirement need not be required for the other party.

Question 80

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

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