Question 1

Sour Dough Inc. and The Bread Company, agree to a contract that includes an arbitration clause. If a dispute arises, a court having jurisdiction may​
A) ​monitor any arbitration until it concludes.
B) ​order an arbitrator to rule in a particular way.
C) ​order a party to bring the dispute to court.
D) ​order a party to submit to arbitration.

Accepted Answer

The arbitration clause means that any dispute between Sour Dough Inc. and The Bread Company must be resolved through arbitration. Therefore, if a dispute arises, a court having jurisdiction may order a party to submit to arbitration, but cannot order the dispute to be brought to court or order the arbitrator to rule in a particular way. The court may monitor the arbitration only to ensure it is conducted fairly and in accordance with the arbitration agreement.

Question 2

Norwest Trucking Corporation files a suit in a state court against Bob's Service Company (BSC), and wins. BSC appeals the court's decision, asserting that the evidence presented at trial to support Norwest's claim was so scanty that no reasonable jury could have found for the plaintiff. Therefore, argues BSC, the appellate court should reverse the trial court's decision. Is the appellate court likely to reverse the trial court's findings with respect to the facts? If not, why not? What are an appellate court's options after reviewing a case?​

Accepted Answer

The answer of Norwest Trucking Corporation files a suit in...

Question 3

Tech Performance, Inc., completes programming and other tech services for Uno IT Products Corporation. When Uno's computer system crashes, it loses $500,000 worth of business and pays $100,000 to have the system reprogrammed. Uno IT announces to the media that the crash was due to Tech Performance's incompetence and files a complaint in a federal court against the firm. What are Tech Performance's options in response?​

Accepted Answer

The answer of Tech Performance, Inc., completes programming and other...

Question 4

SPF Sunscreen Corporation and Taylor agree to resolve their dispute through arbitration. The arbitrator's decision is called​
A) ​a conclusion of law.
B) ​a finding of fact.
C) ​an award.
D) ​a verdict.

Accepted Answer

When parties agree to resolve their dispute through arbitration, the arbitrator's decision is called an award. A conclusion of law, finding of fact, and verdict are terms typically associated with judicial proceedings, not arbitration.

Question 5

To resolve a dispute in nonbinding arbitration, Alyson in Baltimore and Chuck in Denver utilize E-Resolve, an online dispute resolution (ODR) service. This limits these parties' recourse to the courts​
A) ​not at all.
B) ​until the ODR service has issued a decision.
C) ​with respect to any dispute arising between them.
D) ​with respect to this dispute only.

Accepted Answer

Nonbinding arbitration means the parties are not legally bound by the decision and can still seek resolution in court if they choose.

Question 6

Quest Inc., a U.S. firm, and Real Treks, Ltd., a Canadian firm, enter into a contract that does not have a forum-selection or choice-of-law clause. Litigation between Quest and Real Treks involving this contract may occur in​
A) ​an online forum only.
B) ​Canada or the United States, but not both.
C) ​Canada, the United States, or both.
D) ​an international, United Nations tribunal only.

Accepted Answer

Because the contract does not include a forum-selection or choice-of-law clause, it is likely that either Canadian or U.S. courts could assert jurisdiction over any dispute arising from the contract. Both countries have mechanisms in place to enforce contracts with foreign parties. Therefore, litigation between Quest and Real Treks could occur in Canada, the United States, or both.

Question 7

Farmers Pantry Products Inc. and Market Grocers LLC dispute a term in their contract. If Farmers Pantry and Market Grocers have a long-standing business relationship that they would like to continue, they may prefer to settle their dispute through mediation because​
A) ​the case will be heard by a jury.
B) ​the dispute will eventually go to trial.
C) ​the process is not adversarial.
D) ​the resolution of the dispute will be decided an expert.

Accepted Answer

Mediation is not an adversarial process, meaning both parties can work together to come up with a fair solution rather than working against each other in a courtroom. This can help preserve the business relationship between Farmers Pantry and Market Grocers. Option A is incorrect because mediation does not involve a jury. Option B is incorrect because mediation is an alternative to going to trial. Option D is incorrect because while mediation may involve a neutral third-party expert, it is ultimately the parties themselves who come up with the solution, not the expert.

Question 8

Millie and Noble dispute the quality of a suite of furniture sold over the Internet. They agree to resolve their dispute in OpenTerms.com, an online forum. Like most online forums, OpenTerms.com applies​
A) ​general, universal legal principles.
B) ​the provisions of the Federal Magistrates Act.
C) ​international principles provided by the United Nations.
D) ​the law of the Internet.

Accepted Answer

Most online forums, including OpenTerms.com, will apply general, universal legal principles rather than specific laws or regulations of a particular jurisdiction or organization. This allows the forum to be accessible to users from various locations and backgrounds.

Question 9

If Cornel and Deanna resolve their dispute by having a neutral third party render a binding decision, they will have used the method of​
A) ​arbitration.
B) ​conciliation.
C) ​intervention.
D) ​mediation.

Accepted Answer

Based on the given scenario, Cornel and Deanna are using a neutral third party to make a final decision, which is a defining characteristic of arbitration. Conciliation involves a third party facilitating communication between the parties to reach a solution, which is not the case here. Intervention involves external parties (such as government agencies) stepping in to resolve a conflict, which is not mentioned in the scenario. Mediation involves a third party helping the parties reach a mutually agreed-upon solution, rather than making a binding decision. Therefore, arbitration is the best choice.

Question 10

Cullen files a suit against Demi. Cullen and Demi meet, and each party's attorney argues the party's case before a judge and jury. The jury presents an advisory verdict, after which the judge meets with the parties to encourage them to settle their dispute. This is​
A) ​court-ordered arbitration.
B) ​early neutral case evaluation.
C) ​a mini-trial.
D) ​a summary jury trial.

Accepted Answer

This scenario describes a summary jury trial, where the parties present abbreviated versions of their case to a jury, which then provides a non-binding advisory verdict. The judge then uses this verdict to encourage the parties to settle their dispute.

Question 11

Service Employees International Union and Timberline Products, Inc., have their dis-pute resolved in arbitration. The arbitrator arbitrates issues that the parties did not agree to submit to arbitration. This is a ground for a court to​
A) ​none of the choices.
B) ​review the merits of the dispute.
C) ​review the sufficiency of the evidence.
D) ​set aside the award.

Accepted Answer

The ground for a court to set aside an arbitration award is when the arbitrator arbitrates issues that the parties did not agree to submit to arbitration. Therefore, Choice D is the correct answer.

Question 12

Liz and Moss disagree over the amount due under their contract. To avoid involving any third party in the resolution of their dispute, Liz and Moss might prefer to use the alternative dispute resolution method of​
A) ​arbitration.
B) ​litigation.
C) ​mediation.
D) ​negotiation.

Accepted Answer

Negotiation is the alternative dispute resolution method that allows parties to resolve their disputes without involving any third party, relying instead on direct discussions to reach a mutually acceptable agreement.

Quiz 2: Courts and Alternative Dispute Resolution

Sour Dough Inc. and The Bread Company, agree to a contract that includes an arbitration clause. If a dispute arises, a court having jurisdiction may​

SPF Sunscreen Corporation and Taylor agree to resolve their dispute through arbitration. The arbitrator's decision is called​

To resolve a dispute in nonbinding arbitration, Alyson in Baltimore and Chuck in Denver utilize E-Resolve, an online dispute resolution (ODR) service. This limits these parties' recourse to the courts​

Quest Inc., a U.S. firm, and Real Treks, Ltd., a Canadian firm, enter into a contract that does not have a forum-selection or choice-of-law clause. Litigation between Quest and Real Treks involving this contract may occur in​

Farmers Pantry Products Inc. and Market Grocers LLC dispute a term in their contract. If Farmers Pantry and Market Grocers have a long-standing business relationship that they would like to continue, they may prefer to settle their dispute through mediation because​

Millie and Noble dispute the quality of a suite of furniture sold over the Internet. They agree to resolve their dispute in OpenTerms.com, an online forum. Like most online forums, OpenTerms.com applies​

If Cornel and Deanna resolve their dispute by having a neutral third party render a binding decision, they will have used the method of​

Cullen files a suit against Demi. Cullen and Demi meet, and each party's attorney argues the party's case before a judge and jury. The jury presents an advisory verdict, after which the judge meets with the parties to encourage them to settle their dispute. This is​

Service Employees International Union and Timberline Products, Inc., have their dis-pute resolved in arbitration. The arbitrator arbitrates issues that the parties did not agree to submit to arbitration. This is a ground for a court to​

Liz and Moss disagree over the amount due under their contract. To avoid involving any third party in the resolution of their dispute, Liz and Moss might prefer to use the alternative dispute resolution method of​

Sour Dough Inc. and The Bread Company, agree to a contract that includes an arbitration clause. If a dispute arises, a court having jurisdiction may

SPF Sunscreen Corporation and Taylor agree to resolve their dispute through arbitration. The arbitrator's decision is called

To resolve a dispute in nonbinding arbitration, Alyson in Baltimore and Chuck in Denver utilize E-Resolve, an online dispute resolution (ODR) service. This limits these parties' recourse to the courts

Quest Inc., a U.S. firm, and Real Treks, Ltd., a Canadian firm, enter into a contract that does not have a forum-selection or choice-of-law clause. Litigation between Quest and Real Treks involving this contract may occur in

Farmers Pantry Products Inc. and Market Grocers LLC dispute a term in their contract. If Farmers Pantry and Market Grocers have a long-standing business relationship that they would like to continue, they may prefer to settle their dispute through mediation because

Millie and Noble dispute the quality of a suite of furniture sold over the Internet. They agree to resolve their dispute in OpenTerms.com, an online forum. Like most online forums, OpenTerms.com applies

If Cornel and Deanna resolve their dispute by having a neutral third party render a binding decision, they will have used the method of

Cullen files a suit against Demi. Cullen and Demi meet, and each party's attorney argues the party's case before a judge and jury. The jury presents an advisory verdict, after which the judge meets with the parties to encourage them to settle their dispute. This is

Service Employees International Union and Timberline Products, Inc., have their dis-pute resolved in arbitration. The arbitrator arbitrates issues that the parties did not agree to submit to arbitration. This is a ground for a court to

Liz and Moss disagree over the amount due under their contract. To avoid involving any third party in the resolution of their dispute, Liz and Moss might prefer to use the alternative dispute resolution method of