Question 1

A(n) ______ is a provision in a contract that mandates that all disputes arising under the contract must be settled by arbitration.
A) Binding arbitration clause
B) Court-annexed arbitration clause
C) Approved mediation/arbitration clause
D) Consolidated merger clause
E) ADR neutral clause

Accepted Answer

A binding arbitration clause is a provision in a contract that mandates that all disputes arising under the contract must be settled by arbitration.

Question 2

Which of the following is true in regard to precedent in relation to law in general and arbitration?
A) Like the law in general, the law governing arbitration agreements is not a fixed set of rules or precedents.
B) Unlike the law in general, the law governing arbitration agreements is a fixed set of rules or precedents.
C) Law in general has a fixed set of rules or precedents, but the law governing arbitration is not a fixed set of rules or precedents.
D) Neither the law in general nor the law of arbitration has a fixed set of precedents.
E) Both the law in general and the law of arbitration have a fixed set of precedents except in the area of consumer law in which there is no fixed set of law or precedents.

Accepted Answer

Like the law in general, the law governing arbitration agreements is not a fixed set of rules or precedents.

Question 3

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 in which only a few witnesses are called to the stand leading to a binding verdict.
E) A binding trial conducted by a panel of mediators after a failed mediation.

Accepted Answer

A summary jury trial is an abbreviated trial that leads to a nonbinding jury verdict.

Question 4

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

Accepted Answer

The Supreme Court, in Robert Gilmer v. Interstate/Johnson Lane Corp., recognized that arbitration will not undermine the role of the EEOC in enforcing the Age Discrimination in Employment Act, that arbitration is not precluded by the Act, and that arbitrators have the power to fashion equitable relief in such cases.

Question 5

What types of ADR techniques exist in Japan?
A) Compromise and conciliation, but not arbitration
B) Conciliation and arbitration, but not compromise
C) Arbitration, but not compromise or conciliation
D) Compromise, conciliation, and arbitration
E) ADR is outlawed in Japan

Accepted Answer

Japan's ADR techniques come in three forms: compromise, conciliation, and arbitration.

Question 6

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 district court.
D) Before a case has been filed in any court.
E) Upon order of a federal judge only.

Accepted Answer

Generally, a private trial occurs after a case has been filed in either state or district court.

Question 7

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%

Accepted Answer

Mediation programs are under way in more than one-third of the state courts.

Question 8

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

Accepted Answer

A party can enter negotiations with one of two approaches: adversarial or problem solving.

Question 9

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

Accepted Answer

Arbitration is used in medical malpractice cases, environmental disputes, commercial contract disputes, and insurance liability claims; but no area uses arbitration in as great a percentage of cases as does the employment area.

Question 10

Which of the following is true regarding private trials?
A) They may allow defendants to hide wrongdoing from the public.
B) 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.
C) They are generally slower than regular litigation.
D) They are a form of state or federal litigation closed to the public to protect the identity of litigants in certain sensitive situations.
E) They unfairly discriminate against corporations because by law in some cases corporations must pay the costs involved for indigent plaintiffs.

Accepted Answer

Private trials, like arbitration, have been criticized because they allow disputing parties to "hide" the dispute from the public.

Question 11

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

Accepted Answer

In the typical minitrial, the business representatives, who presumably understand the complex matters of the dispute better than an outside arbitrator, have settlement authority.

Question 12

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

Accepted Answer

In the case of Equal Employment Opportunity Commission v. Waffle House Inc., the U.S. Supreme Court ruled that the Equal Employment Opportunity Commission was not foreclosed from litigating claims involving an employee because the employee signed a mandatory arbitration agreement.

Question 13

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.

Accepted Answer

Increasingly, litigants are using arbitration and mediation to resolve disputes in e-commerce cases.

Question 14

According to the text, which of the following is true regarding defenses to an arbitration award under the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards?
A) The only defense recognized is that the losing party did not receive notice of the arbitration.
B) There are no recognized defenses.
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) 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.

Accepted Answer

Regarding the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, there are three defenses to lack of enforcement of the arbitration award as follows: the arbitrator acted outside the scope of her or his authority when making the decision, one of the parties to the agreement did not have the authority to enter into a legal contract, and that the losing party did not receive notice of the arbitration.

Question 15

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) A special type of blended mediation and arbitration applicable only in the medical malpractice arena.

Accepted Answer

Med-arb is a dispute resolution process in which the parties agree to start out in mediation and, if the mediation is unsuccessful on one or more points, also agree to move on to arbitration.

Question 16

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) Mediation is required by law in federal district court, but arbitration is not required.
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) Federal district courts vary on the approved ADR methods.

Accepted Answer

Each district court can decide whether to require ADR.

Question 17

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

Accepted Answer

In the federal system, almost all the circuit courts of appeal have mediation programs.

Question 18

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

Accepted Answer

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

Question 19

In which of the following do parties select a neutral third party and explain their respective positions to this neutral, who then evaluates the strengths and weaknesses of the case?
A) Summary jury trial
B) Med-arb
C) Early neutral case evaluation
D) Private trials
E) Neutral submission

Accepted Answer

With early neutral case evaluation, the parties select a neutral third party and explain their respective positions to this neutral, who then evaluates the strengths and weaknesses of the case.

Question 20

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 trial
E) Neutral submission

Accepted Answer

Several states now allow private trials, an ADR method in which a referee is selected and paid by the disputing parties to offer a legally binding judgment in a dispute.

Quiz 4: Alternative Dispute Resolution

A(n) ______ is a provision in a contract that mandates that all disputes arising under the contract must be settled by arbitration.

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

What is a summary jury trial?

What did the U.S. Supreme Court rule 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 types of ADR techniques exist in Japan?

When does a private trial typically occur?

Mediation programs are underway in _____ of state courts.

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

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

Which of the following is true regarding private trials?

Which of the following is generally true regarding minitrials?

Which of the following is true regarding the use of arbitration and mediation in e-commerce cases?

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

What type of dispute resolution process is med-arb?

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?

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

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

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?

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?