Deck 4: Alternative Tools of Dispute Resolution

Question 1

In ________, the neutral third party makes no final decision.

A)mediation
B)arbitration
C)private trials
D)summary jury trials

Answer 1

A

Question 2

Which of the following is a characteristic of alternative dispute resolution?

A)They generally consume more time than litigations.
B)The person presiding over the resolution process is assigned by a court.
C)The presiding person is more likely to be familiar with the subject matter of the dispute than a judge would be.
D)The formal hearing times cannot be changed to accommodate the parties involved.

Answer 2

C

Question 3

Which of the following statements is true of mediation?

A)A mediator is appointed by a court.
B)The proceedings of mediation can be used in litigations.
C)Mediation is more time-consuming and expensive than litigation.
D)Mediation is used increasingly to resolve insurance claim disputes and commercial contract problems.

Answer 3

D

Question 4

Which of the following provides sufficient grounds to set aside an arbitrator's award?

A)The parties were not represented by attorneys.
B)The arbitrator did not cite any conclusions of law in the award.
C)The arbitrator refused to postpone the hearing despite sufficient cause.
D)The arbitrator did not request arbitration briefs before providing a decision.

Question 5

Which of the following statements is true about negotiation and settlement?

A)It is a formal ADR method that delivers a verdict.
B)Most lawyers attempt negotiation before taking a case to trial.
C)It involves an independent or neutral third party.
D)It is mandatory for both the parties to be represented by a lawyer.

Question 6

Satarn Inc. often does business with Scorpeo Inc. Recently, the two corporations had a minor dispute. However, they wish to continue doing business with one another for which their relationship should be preserved. They came to an agreement that whatever transpires during the resolution process should be confidential. Which of the following dispute resolution methods should they choose?

A)litigation
B)mediation
C)arbitration
D)summary jury trials

Question 7

Which of the following is the least adversarial of the formal methods of dispute resolution?

A)mediation
B)arbitration
C)private trial
D)summary jury trial

Question 8

Which of the following alternative dispute resolution methods does not involve a neutral third person?

A)negotiation and settlement
B)early neutral case evaluation
C)minitrial
D)mediation

Question 9

Which of the following statements is true about an award in arbitration?

A)An arbitrator's decision is called an award only if monetary compensation is given.
B)An arbitrator must cite precedents for the award.
C)An award does not have to state any findings of fact or conclusions of law.
D)An arbitrator strictly applies a rule of law while arriving at a decision.

Question 10

Which of the following is a reason to use mediation to resolve environmental disputes?

A)It is the most adversarial ADR method.
B)It can easily accommodate multiple parties.
C)The proceedings of mediation are confidential.
D)The agreement reached in mediation is not legally binding.

Question 11

In ________, the neutral third party attempts to help the parties to draft agreements.

A)neutral case evaluation
B)arbitration
C)litigation
D)mediation

Question 12

Mediation differs from arbitration in that ________.

A)a mediator makes no final decision, whereas an arbitrator provides a decision for the parties.
B)whatever transpires during mediation can be used as evidence in court, but the proceedings of arbitration remain confidential
C)mediation offers lesser potential for creative solutions than arbitration
D)a mediator is appointed by a court, whereas an arbitrator is chosen by the disputants

Question 13

Which of the following is true of a mediator?

A)A mediator should arrive at a final decision.
B)A mediator can be obtained from the local bar association.
C)A person who does not have a background in law is generally preferred as a mediator.
D)If the mediator is not from a governmental organization, the agreement signed during mediation is not valid.

Question 14

Which of the following statements is true about arbitration?

A)An arbitration is less efficient than a litigation.
B)An official record of the arbitration hearing is always made to check for discrepancies.
C)An arbitrator can question the witness for information.
D)A legal counsel is required in arbitration.

Question 15

Which of the following best defines arbitration briefs?

A)They are written arguments from both parties.
B)They are official records of proceedings of the case.
C)They are documents providing reasons for a decision.
D)They are documents detailing the financial statements of both parties.

Question 16

Which of the following statements is true of alternative dispute resolution?

A)Parties using alternative dispute resolution are likely to face adverse publicity.
B)Alternative dispute resolution is generally more expensive than litigation.
C)Alternative dispute resolution generally leads to loss of confidentiality and trade secrets.
D)Alternative dispute resolution methods are less time-consuming, and the formal-hearing times and places can be set to accommodate the parties.

Question 17

Gemeni Inc. has acquired land adjacent to a forest region to construct a manufacturing plant. This has led to a dispute with the land owners of that region. Gemeni also expects various environmental groups to become involved in the dispute. If it wants to have a good relationship with these parties, which of the following methods of dispute resolution should it choose?

A)private trial
B)litigation
C)arbitration
D)mediation

Question 18

Atlos Inc. is the primary customer of the raw materials provided by Arcturis Inc. Atlos is unhappy about the previous batch of materials supplied, which has led to a dispute between the two corporations. But, in spite of their dispute, the two companies prefer to continue doing business. Hence, they wish to resolve the dispute in an informal manner without a neutral third party. Which of the following dispute resolution methods is likely to work best for them?

A)negotiation and settlement
B)early neutral case evaluation
C)arbitration
D)mediation

Question 19

Andrew is a mediator with a dispute resolution firm. He has been selected to mediate a dispute between two corporations. Which of the following statements is true of his powers?

A)Andrew can reach a judgment that will be binding on both parties.
B)Andrew can make a final decision that will be used as evidence by a court.
C)Andrew can help the disputants to draft an agreement that will be binding.
D)Andrew can deliver a binding judgment only if the parties do not reach an agreement.

Question 20

The process of negotiation and settlement differs from arbitration in that ________.

A)the process of negotiation takes place in a much more formal setting than in arbitration
B)representation by legal counsel is not mandatory in negotiation, unlike in arbitration
C)no neutral third party is involved in the negotiation process, unlike in arbitration
D)the proceedings of negotiation preserves confidentiality, whereas arbitration must be recorded for review

Question 21

A criticism of ________ is that it/they may lead to the development of a two-tier system of justice.

A)minitrials
B)private trials
C)arbitration
D)mediation

Question 22

Which of the following statements is true of a submission agreement?

A)It is a binding clause in a contract mandating all disputes to be settled by arbitration.
B)It specifies the nature of the dispute and how the arbitrator will be selected.
C)It is an agreement stating that both parties agree to abide by the mediator's decision.
D)It is an agreement provided in court stating how contract disputes are to be settled.

Question 23

The neutral third party in a(n) ________ ADR method provides an opinion on the strengths and weaknesses of a case.

A)private trial
B)early neutral case evaluation
C)arbitration
D)litigation

Question 24

Which of the following is a difference between arbitration and minitrials?

A)The disputants are not represented by legal counsel in a minitrial, unlike in arbitration.
B)The parties are more likely to be involved in direct communication during arbitration than in minitrials.
C)The neutral party in arbitration is appointed by a court, but they are selected by the disputants in a minitrial.
D)The neutral adviser in minitrials provides an opinion on the case, whereas the arbitrator delivers a binding decision.

Question 25

Which of the following is a difference between minitrials and private trials?

A)Minitrials offer jury services, whereas private trials do not.
B)Private trials ensure confidentiality, whereas minitrials do not.
C)The neutral party reports findings of facts to a court in minitrials, but not in private trials.
D)Private trials require a greater degree of direct communication between disputants than minitrials.

Question 26

Alice and Mary are the two parties in a dispute. They have recently gone through the process of mediation, but Alice is unhappy with the results and wants to go through arbitration. Which of the following statements is true of this scenario?

A)The parties decide whether to allow what transpired during mediation to be permitted as evidence in arbitration.
B)The mediator of this dispute must become the arbitrator as well.
C)Mary can select the arbitrator if Alice wants to go through arbitration.
D)The arbitrator can provide a decision that is binding on both Alice and Mary.

Question 27

A modification of the ________ allows the neutral adviser to settle the case if the corporate executives cannot agree on a means of resolving the dispute within a given period of time.

A)minitrial
B)mediation
C)negotiation
D)early neutral case evaluation

Question 28

Which of the following is a difference between arbitration and litigation?

A)Arbitration is conducted in a judicial setting, whereas litigation is not.
B)A judge's decision is more likely to be a compromise than an arbitrator's decision.
C)The prehearing discovery phase is longer in arbitration than in litigation.
D)An arbitrator takes a more active role in questioning a witness than would a judge.

Question 29

Which of the following statements is true of minitrials?

A)The neutral adviser generally does not settle a dispute.
B)The parties are not represented by their attorneys.
C)The settlement authority resides with a jury.
D)It is a lawsuit in which the right to trial by jury has been waived.

Question 30

Which of the following statements is a characteristic of minitrials?

A)Minitrials are unsuitable for complex matters.
B)The neutral adviser in minitrials is given the authority to settle a case if the corporate executives cannot resolve it.
C)Minitrials are likely to harm the relationship between the disputants as there is no direct communication between them.
D)Minitrials are generally held to appeal an arbitrator's decision.

Question 31

Which of the following is a problem associated with arbitration?

A)The arbitrators are chosen based on the demographics of the disputants.
B)Allegations of race, sex, and age discrimination cannot be annexed to arbitration.
C)Arbitration allows industries to hide its disputes from the public.
D)Disputes involving intellectual property rights cannot be resolved through arbitration.

Question 32

Which of the following statements is true of the National Consumer Arbitration Program?

A)The arbitrator can award punitive damages.
B)It can only hear cases that have been dismissed from court.
C)Arbitration through this program is more expensive than a lawsuit in court.
D)Arbitrators cannot award damages beyond the value of the product in question.

Question 33

________ is an ADR method that is often referred to as "rent-a-judge."

A)Private trial
B)Arbitration
C)Early neutral case evaluation
D)Minitrial

Question 34

Which of the following is a difference between a private trial and litigation?

A)The disputants select the neutral party in a private trial, but a judge is assigned to the lawsuit.
B)Private trials need to be held with a jury, but the parties can waive their right to a jury in litigations.
C)A judge has to state the conclusions of law, whereas a referee in a private trial need not.
D)The disputants decide whether to be bound by the referee's verdict in a private trial, but not in a lawsuit.

Question 35

Which of the following alternate dispute resolution methods empowers the neutral party to enter a legally binding judgment?

A)private trial
B)summary jury trial
C)negotiation and settlement
D)early neutral case evaluation

Question 36

Which of the following statements is true of private trials?

A)The use of private trials by disputants with sufficient resources is likely to improve public courts.
B)A party dissatisfied with a referee's judgment cannot move for a new trial.
C)The jurors are a typical jury, accurately representing the idea "jury of one's peers."
D)The cases are tried by a referee selected and paid by the disputants.

Question 37

Which of the following is true of a binding arbitration clause?

A)The parties that have drawn up the contract can choose the arbitrator.
B)The parties that have agreed on this clause can resolve their disputes in a federal court.
C)It cannot be included in a collective bargaining agreement.
D)It usually indicates that both parties agree to be bound by the arbitrator's award.

Question 38

Which of the following statements is true of an arbitrator?

A)An arbitrator must have a background in law.
B)An arbitrator is usually assigned by a court.
C)An arbitrator has no say on the substantive and procedural rules to be followed.
D)An arbitrator's decision is called an award.

Question 39

Blee Scales Inc. and Emerold Inc. are involved in a dispute over a complex matter. They are currently seeking ways to resolve this dispute. Emerold Inc. does not want to abide by a decision from a third party as it feels that the issue is too complicated for outsiders to understand fully. However, it wants to know the likely outcome if the dispute went to trial. Which of the following dispute resolution methods should Emerold Inc. choose?

A)minitrials
B)private trials
C)arbitration
D)negotiation and settlement

Question 40

A(n) ________ is a separate agreement providing that a specific dispute be resolved through arbitration.

A)escrow agreement
B)submission agreement
C)binding agreement
D)unanimous consent agreement

Question 41

Which of the following is an issue with consumers being forced to give up their right to a trial and being coerced into an alternative dispute resolution forum?

A)Arbitration and mediation are generally more expensive than litigation.
B)Consumers are likely to get a higher award from a jury than from an arbitrator.
C)ADR forums usually take more time to resolve a dispute than trial courts.
D)Consumers have no say in the selection of the neutral third party.

Question 42

Charlie was involved in an automobile accident and wants to file a lawsuit. However, he would like to know what judgment a jury is likely to reach before involving himself in an expensive trial. If Charlie has limited time and resources to decide whether to file a case, which of the following should he choose?

A)private jury trial
B)summary jury trial
C)arbitration
D)mediation

Question 43

A summary jury trial is ________.

A)the process of bringing legal action against a person or entity in a court of law
B)the process of parties explaining their positions to a neutral third party who delivers a judgment within ten days
C)an alternative dispute resolution method that consists of an abbreviated trial, a nonbinding jury verdict, and a settlement conference
D)an alternative dispute resolution method in which cases are tried in private by a referee who is empowered by statute to enter a binding judgment

Question 44

Resolving a dispute through alternative dispute resolution sets a precedent for future cases.

Question 45

The critics of mediation argue that it creates an impression of equality even when none exists.

Question 46

An arbitrator's award may be set aside if the arbitrator exceeded his or her authority in making the award.

Question 47

The American Arbitration Association (AAA) is a private, nonprofit organization.

Question 48

Mediators decide the terms of agreements.

Question 49

In some U.S. states, disputes involving less than a certain amount of money automatically go to arbitration.

Question 50

An arbitrator's decision is called an award only if monetary compensation is ordered.

Question 51

Which of the following is common between a minitrial and a summary jury trial?

A)The judgment delivered by the neutral party is binding on both the parties.
B)The neutral party delivers a binding judgment if the parties are not able to reach an agreement.
C)The disputing parties confer to reach a settlement after the verdict has been delivered.
D)The jurors are selected by the disputants in both these methods of dispute resolution.

Question 52

Which of the following statements is true of court-annexed arbitration?

A)The arbitrator's decision is binding.
B)A full trial cannot be held for a court-annexed arbitration case.
C)The right of a dissatisfied party to reject a court-mandated arbitration decision is really necessary to preserve the disputants' due process rights.
D)The court bears the costs of arbitration if a party chooses to go to court after arbitration.

Question 53

A contract of adhesion between a consumer and a business party can have a binding arbitration clause.

Question 54

Which of the following statements is true of a summary jury trial?

A)A summary jury trial lasts for more than two days.
B)The jury is composed of ten people.
C)The verdict delivered by the judge is final and binding.
D)If a case goes to trial, nothing from the summary trial is admissible as evidence.

Question 55

Successful negotiation of a settlement requires each party to give up something in exchange for getting something from the other party.

Question 56

Satirn Inc. is facing a dispute from one of its competitors. Satirn wants to keep the proceedings confidential. It wants to obtain a binding judgment as it believes that it has a strong case. Which of the following methods of dispute resolution should it choose?

A)private trials
B)arbitration
C)summary jury trials
D)negotiation and settlement

Question 57

Which of the following statements is true about court-mandated mediation?

A)The parties are much more likely to view mediation as a hurdle before a trial.
B)The rules on evidence are generally the same for court-mandated mediation and trials.
C)The mediator's decision is binding.
D)The parties are likely to enter the mediation process with a desire to work out an agreement.

Question 58

Lawyers generally avoid negotiation and settlement as a method of dispute resolution.

Question 59

Which of the following is a difference between a private jury trial and summary jury trial?

A)A summary jury trial lasts only for a day, whereas a private jury trial usually lasts longer.
B)The jurors in a summary jury trial are aware that their decision is not binding, unlike in a private jury trial.
C)A summary jury trial ensures confidentiality, whereas a private jury trial does not.
D)A summary jury trial can lead to the development of a two-tier system of justice, unlike that of a private jury trial.

Question 60

Arnold is the in-house counsel of Frankin Inc., a wealthy corporation that is facing a dispute with a consumer. The allegations made by the consumer can be potentially damaging for the corporation. The directors of Frankin want to avoid a trial in court. However, they are likely to get a judgment in their favor as they have a strong case. If Arnold feels that an educated jury will be favorably disposed toward Frankin Inc., which of the following alternative methods of dispute resolution should he recommend?

A)private trials
B)arbitration
C)mediation
D)summary jury trials

Question 61

Why does the Federal Arbitration Act (FAA) want to limit a court's power over an arbitration award?

Question 62

State the criticisms of mediation.

Question 63

According to the National Consumer Arbitration Program, arbitrators can award damages for personal injuries suffered as a result of a defective product.

Question 64

Explain why there are concerns regarding the neutrality of dispute resolution firms.

Question 65

A summary jury trial generally consists of 24 people.

Question 66

The federal circuit courts had already implemented ADR programs before Congress enacted the ADR Act of 1998.

Question 67

The jurors of a summary jury trial are usually not aware that their decision does not have a binding effect.

Question 68

What are the consequences of the use of private trials according to critics?

Question 69

Explain how various states differ in their encouragement of the use of ADR methods.

Question 70

Why is an arbitrator's decision likely to be a compromise?

Question 71

What are the common uses of arbitration?

Question 72

The settlement authority of a minitrial resides with the neutral adviser.

Question 73

ADR programs cannot be used at the appellate level.

Question 74

A summary jury trial lasts only one day.

Question 75

The Equal Employment Opportunity Commission (EEOC) can seek remedies in discrimination cases, even when a binding arbitration agreement exists to settle all employment-related disputes.

Question 76

If a dispute goes to trial, statements made in the summary jury trial can be used as evidence.

Question 77

In a private trial, the referee is empowered by statute to enter a legally binding judgment.