Contents

Sunday, January 1, 2017

Business Law - Chapter 04 Alternative Dispute Resolution

The term ADR refers to the resolution of legal disputes through methods other than litigation. 
TRUE
Courts are generally critical and unsupportive of ADR methods. 
FALSE
A person must have a law degree in order to be a mediator. 
FALSE
A person must be a lawyer in order to perform arbitration. 
FALSE
An arbitrator is more likely to issue a compromise decision than a judge. 
TRUE
Med-arb is a type of ADR method. 
TRUE
A summary jury trial leads to a binding jury verdict. 
FALSE
In an early neutral case evaluation, the neutral provides a binding ruling. 
FALSE
Federal courts have vetoed any form of ADR. 
FALSE
Mediation is a process done only in the U.S., not in foreign countries. 
FALSE

ADR is a process done only in the U.S., not in foreign countries.
FALSE
Which of the following is a type of ADR? 
A. Consultation
B. Mediation
C. Case argument
D. Case analysis
E. Focus grouping
Which of the following is accurate regarding the speed and cost of ADR? 
A. It is usually faster and cheaper.
B. It is usually faster but more expensive.
C. It is usually slower and more expensive.
D. It is usually slower but cheaper.
E. No studies have known, so the answer is unknown.
Which of the following is an extension of negotiation? 
A. Arbitration
B. Minitrials
C. Neutral case evaluations
D. Mediation
E. Private trials
Which of the following is true regarding the mediation process? 
A. Proceedings are confidential.
B. The mediator allows each side to speak before making a decision.
C. The mediator listens to witnesses on each side before making a decision.
D. The mediator uses the law agreed upon by the parties in reaching a decision.
E. All the above are true.
Which of the following is an advantage of mediation? 
A. It helps disputing parties preserve their relationships.
B. Parties to mediation have a high level of autonomy.
C. The mediator solves the dispute if the parties are unable to do so.
D. It helps the disputing parties preserve their relationships, and also helps parties to mediation have a high level of autonomy.
E. It helps disputing parties preserve their relationships, helps parties to mediation have a high level of autonomy, and the mediator solves the dispute if the parties are unable to do so.
Which of the following are criticisms of mediation? 
A. Its informal process creates an image of equality between the parties which may not actually exist.
B. Some parties use the mediation process for delay.
C. The resulting agreement between the parties may not be equal.
D. Its informal process creates an image of equality between the parties which may not actually exist; some parties use the mediation process for delay, but not that the agreement may lack equality.
E. Its informal process creates an image of equality between the parties which may not actually exist; some parties use the mediation process for delay; the resulting agreement between the parties may not be equal.
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.
Which of the following is true regarding the use of mediation in environmental disputes? 
A. Mediation allows for the use of creative solutions and compromises which are often needed in environmental disputes.
B. Mediation is attractive in environmental disputes because multiple parties are often involved.
C. Mediation is commonly used in environmental disputes.
D. All the above are true.
E. None of the above are true.
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 have legal counsel in some types of proceedings, but not in others.
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.
The arbitrator typically provides a decision within ____ days of an arbitration hearing. 
A. 10
B. 25
C. 30
D. 90
E. 120
When is an arbitrator's decision called an "award"? 
A. Always.
B. Only if one party completely wins and there is no split decision.
C. Never.
D. Only if a money award is involved.
E. Only if both parties had lawyers. That terminology makes it easier for the lawyers to be paid.
Which of the following are reasons that an arbitration award may be set aside under the Federal Arbitration Act? 
A. The arbitrator failed to make a final and definite award.
B. The award was the result of fraud.
C. The arbitrator displayed bias.
D. All the above.
E. None of the above. There is no Federal Arbitration Act.
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" during arbitration proceedings which renders the outcome of the arbitration comparable to a decision handed down by the judiciary branch.
C. Parties no longer need to appeal to the judiciary branch after an arbitration hearing.
D. All the above.
E. None of the above. Arbitration is outlawed in Brazil by federal law.
According to the text, positive points of arbitration involve(s) which of the following?
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. Arbitrators are assigned; hence parties do not have to pick them, and arbitration is generally less expensive than litigation.
E. Arbitrators are assigned; so parties do not have to pick them, arbitration is generally less expensive than litigation, and arbitrators are bound by the same rules as judges in applying precedent.
According to the text, which of the following are criticisms of arbitration? 
A. That more panels are being used increasing cost and scheduling difficulties.
B. That companies can more easily hide misdoing.
C. That parties give away rights without realizing it when agreeing to arbitration.
D. All the above.
E. None of the above. No criticisms of arbitration were discussed.
What is a provision in a contract mandating that all disputes arising under the contract be settled by arbitration called? 
A. A binding arbitration clause
B. A submission agreement
C. A suggested arbitration section
D. A nonbinding ADR section
E. A binding mediatory clause
If a contract does not provide for arbitration, parties may submit a specific dispute involving a contractual provision to arbitration through the use of a ______. 
A. Binding arbitration clause
B. Submission agreement
C. Binding mediatory clause
D. Suggested ADR resolution clause
E. The parties may not submit a specific dispute to arbitration if the contract does not provide for arbitration.
Which of the following is true regarding class arbitration? 
A. The U.S. Supreme Court held that the Federal Arbitration Act does not preclude class action.
B. The U.S. Supreme Court held that the Federal Arbitration Act precludes class action in all circumstances.
C. The U.S. Supreme Court held that whether the Federal Arbitration Act precludes class actions depends on the type of class action involved.
D. The U.S. Supreme Court held that the Federal Arbitration Act precludes class actions only if employment issues are involved.
E. The U.S. Supreme Court has not addressed the validity of class actions.
A[n] ______ clause has been defined as one in which the terms are "manifestly unfair or oppressive and are dictated by a dominant party." 
A. Unconscionable
B. Unreasonable
C. Outrageous
D. Prohibitive
E. Unsupportable
What was the holding of the court in the case Buckeye Check Cashing, Inc. v. Cardegna, in which the U.S. Supreme Court addressed the issue of whether the court or the arbitrator should consider the claim that a contract containing an arbitration provision is void for illegality? 
A. Regardless of whether a challenge is brought in federal or state court, a challenge to the validity of a contract as a whole, not specifically to an arbitration clause, must be decided in court, not in arbitration.
B. Regardless of whether a challenge is brought in federal or state court, a challenge either to the validity of an arbitration clause or to the contract as a whole, must be decided in court, not in arbitration.
C. Regardless of whether a challenge is brought in federal or state court, a challenge either to the validity of an arbitration clause or to the contract as a whole, must go to the arbitrator.
D. Regardless of whether a challenge is brought in federal or state court, a challenge to the validity of an arbitration clause, not to the contract as a whole, must go to the arbitrator.
E. Regardless of whether a challenge is brought in federal or state court, a challenge to the validity of a contract as a whole, not specifically to an arbitration clause, must go to the arbitrator.
What did the U.S. Supreme Court rule in the case of Robert Gilmer v. Interstate/Johnson Lane Corporation involving whether a claim of age discrimination was subject to arbitration? 
A. The defendant's policy of requiring that the plaintiff agree to arbitrate all employment disputes as a condition of his employment was valid.
B. The defendant's policy of requiring that the plaintiff agree to arbitrate all employment disputes as a condition of his employment was invalid.
C. The EEOC was bound by the employee's agreement to arbitrate all employment disputes.
D. The EEOC was not bound by the employee's agreement to arbitrate all employment disputes.
E. The defendant's policy of requiring that the plaintiff agree to arbitrate all employment disputes as a condition of his employment was valid, and the EEOC was bound by the employee's agreement to arbitrate all employment disputes.
What effect does the Federal Arbitration Act have on employment contracts? 
A. It does not apply to employment contracts.
B. It applies to employment contracts.
C. It applies to employment contracts in the construction industry but not to other employment contracts.
D. It applies to employment contracts in the restaurant industry but not to other employment contracts.
E. It has no effect because there is no Federal Arbitration Act.
Billy signs an arbitration agreement providing that he will arbitrate any disputes with his employer, ABC Company. Billy believes that ABC Company has discriminated against him in violation of the Americans With Disabilities Act. The EEOC has also investigated the situation and has brought an action against ABC Company alleging that ABC Company discriminated against Billy in violation of the Americans With Disabilities Act. What is the effect of the arbitration clause in regards to the action brought by the EEOC? 
A. The arbitration clause is enforceable and binding on the EEOC.
B. The arbitration clause is enforceable and binding on the EEOC only if ABC Company provided EEOC with a copy of the agreement before the suit was filed.
C. The arbitration clause is enforceable and binding on the EEOC only if Billy is the only employee who has been discriminated against under the Americans With Disabilities Act.
D. The arbitration clause is not binding on the EEOC.
E. The EEOC can avoid the arbitration clause only if it can show that it prosecuted ABC Company in the past and that ABC Company is a repeat offender.
What type of dispute resolution process is med-arb? 
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. None of the above are contained within the umbrella of med-arb.
What is a summary jury trial? 
A. An abbreviated trial that leads to a nonbinding jury verdict.
B. An unabbreviated trial that leads to a binding jury verdict.
C. An abbreviated trial that leads to a binding jury verdict.
D. An abbreviated trial leading to a binding verdict in which only a few witnesses are called to the stand.
E. A binding trial conducted by a panel of mediators after a failed mediation.
Which of the following is true regarding the use 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.
Why may a minitrial be preferred to arbitration? 
A. It is less costly than arbitration.
B. In a typical minitrial, the business representatives, who presumably understand the complex matters of a dispute better than an arbitrator, have settlement authority.
C. The procedures of the minitrial can be modified to meet more precisely the needs of the parties.
D. All the above.
E. None of the above. Preference is not an issue. A minitrial must follow and come after an arbitration.
In which of the following do parties select a neutral third party and explain their respective positions to the neutral, who then evaluates the strengths and weaknesses of the case? 
A. Summary jury trial
B. Minitrial
C. Early neutral case evaluation
D. Private trials
E. Neutral submission
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. Summary jury trial
B. Minitrial
C. Early neutral case evaluation
D. Private trials
E. Neutral submission
When does a private trial typically occur? 
A. After a jury trial and prior to appeal.
B. After a case has been filed in federal court, but parties must wait at least 30 days.
C. After a case has been filed in either state or federal court.
D. Before a case has been filed in any court.
E. Upon order of a federal judge only.
What types of ADR techniques exist in Japan? 
A. Compromise
B. Conciliation
C. Arbitration
D. All the above
E. None of the above. ADR is outlawed in Japan.
What are the criticisms of private trials? 
A. They may allow defendants to hide wrongdoing from the public.
B. Those who lack funds must use a slower cheaper system.
C. They are quicker than regular litigation.
D. They may allow defendants to hide wrongdoing from the public, and those who lack funds must use a slower cheaper system.
E. They may allow defendants to hide wrongdoing, and they unfairly discriminate against corporations because in some cases corporations must pay the costs involved for indigent plaintiffs.
Bobby has a lawsuit in federal district court and asks Sally, a first year law student, about court-annexed ADR. What should Sally tell him? 
A. Mediation is required by law in federal district court.
B. Arbitration is required by law in federal district court.
C. Both mediation and arbitration are required by law in federal district court.
D. Neither mediation nor arbitration is required by law in federal district court, but all litigants must present a summary of their positions to a case neutral.
E. Bobby should check with the particular district court he is in on the issue because federal district courts vary on the approved ADR methods.
What is the primary ADR process used in federal district courts? 
A. Mediation
B. Arbitration
C. Summary jury trials
D. Early neutral case evaluation
E. Private trials
Mediation programs are underway in _____ of state courts. 
A. More than one-third
B. More than one-half
C. More than 75%
D. Less than one-half
E. Less than 10%
Which of the following is true regarding the federal appellate court's use of ADR? 
A. Half of the federal appellate courts use some type of ADR.
B. All 13 federal appellate courts use some type of ADR.
C. All but one of the 12 federal appellate courts uses some type of ADR.
D. Federal appellate courts do not use ADR.
E. All federal appellate courts use early neutral case evaluation but none use mediation.
As reflected in the text, which organization[s] offer[s] dispute resolution methods for international companies? 
A. The American Arbitration Association
B. The Federated Chamber of Commerce
C. The United Federation of Countries
D. All the above
E. None of the above
According to the text, which of the following is a defense to an arbitration award under the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards? 
A. Not all parties attended the hearing.
B. The award is contrary to the preponderance of the evidence.
C. The award is unreasonable as a matter of law applying a beyond a reasonable doubt standard.
D. All the above are defenses.
E. None of the above are defenses.
______ countries belong to the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards. 
A. 52
B. 78
C. 144
D. 151
E. Over 200

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

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

No comments:

Post a Comment