Business Law, 8e (Cheeseman)
Chapter 3 Judicial, Alternative, and E-Dispute Resolution
1) The paperwork that is filed with the court to initiate and respond to a lawsuit is referred to as
the pleadings.
2) To initiate a lawsuit, the plaintiff must file an appeal in the proper court.
3) A class action is a court order directing the defendant to appear in court and answer the
complaint.
4) The complaint and summons are served on the plaintiff.
5) An answer is the defendant’s written response to a plaintiff’s complaint that is filed with the
court and served on the plaintiff.
6) If the defendant does not answer the complaint, a default judgment is entered against him or
her.
7) Once a default judgment is established, the plaintiff only has to prove damages.
8) While answering a complaint, a defendant cannot assert affirmative defenses.
9) A plaintiff who believes that he or she has been injured by the defendant can file a cross-
complaint against the defendant.
10) A reply is a document filed by the original plaintiff in response to the defendant’s cross–
complaint.
11) A defendant can answer a complaint and file a cross-complaint at the same time.
12) The act of people interested in the lawsuit joining as parties to an existing lawsuit is called
arbitration.
13) Despite their interest in a lawsuit, third parties may not become parties to the lawsuit.
14) When a group of plaintiffs with common claims collectively bring a lawsuit against a
defendant, it is known as consolidation.
15) A class action lawsuit is certified only if there is commonality among the plaintiffs’ claims.
16) The statute of limitations for all lawsuits in the United States is two years.
17) In a case of personal injury due to an accident, the statute of limitations begins to “run” at the
time the accident occurs.
18) A plaintiff can appeal for the extension of the statute of limitations and sue the defendant.
19) A deposition is oral testimony given by a party or witness during the trial.
20) Interventions are written questions submitted by one party to a lawsuit to the other party.
21) A pretrial motion is made to try and dispose of all or part of a lawsuit prior to trial.
22) The motion for summary judgment alleges that if all the facts presented in the pleadings are
taken as true, the party making the motion would win the lawsuit when the proper law is applied
to these asserted facts.
23) The motion for judgment on the pleadings alleges that if the defendant does not file an
answer to the plaintiff’s complaint, the defendant’s liability is established.
24) Motions for summary judgment are supported by evidence outside of the pleadings.
25) In deciding the motion for judgment on the pleadings, the judge also considers facts outside
the pleadings.
26) A pretrial hearing is also known as a settlement conference.
27) In a jury trial, the judge is the trier of fact.
28) Voir dire is the process whereby the jurors ask prospective judges questions to determine
whether they would be biased in their decisions.
29) A trial is conducted with a jury only when the defendant requests a jury trial.
30) After a witness is sworn in, he or she is cross-examined by the plaintiff’s attorney.
31) After the defendant’s attorney completes his or her questions, the plaintiff’s attorney can
question the witness in a re- direct examination.
32) In a rejoinder, the defendant’s attorney can call additional witnesses and introduce other
evidence to counter the rebuttal.
33) Only the defendant can appeal in a criminal case.
34) Negotiation is a procedure whereby the parties choose an impartial third party to hear and
decide the dispute.
35) A mini-trial is a voluntary private proceeding in which lawyers for each side present a
shortened version of their case to the representatives of both sides.
36) In a litigation process, the party who files a complaint is called the ________.
A) bailiff
B) plaintiff
C) prosecutor
D) defendant
37) ________ refers to the document a plaintiff files with the court that serves on the defendant
to initiate a lawsuit.
A) Complaint
B) Order
C) Appeal
D) Rejoinder
38) Once a complaint has been filed with the court, the court will issue a ________, directing the
defendant to appear in court.
A) answer
B) rejoinder
C) summons
D) judicial restraint
39) Which of the following terms denotes the defendant’s written response to a plaintiff’s
complaint that is filed with the court and served on the plaintiff?
A) summons
B) answer
C) rejoinder
D) rebuttal
40) In which of the following cases is a default judgment entered?
A) A defendant admits all the allegations in the complaint.
B) There is insufficient evidence to resolve the dispute.
C) The court believes that the lawsuit can be settled before/without trial.
D) A defendant does not file a written response to a plaintiff’s complaint.
41) A defendant who believes that he or she has been injured by the plaintiff can file
a(n)________ against the plaintiff.
A) injunction
B) cross-complaint
C) rejoinder
D) rebuttal
42) A(n) ________ is a document filed by the original plaintiff to answer the defendant’s cross-
complaint.
A) rejoinder
B) answer
C) reply
D) plea
43) The act of other interested parties joining as parties to an existing lawsuit is termed as
________.
A) intervention
B) consolidation
C) class action
D) arbitration
44) Which of the following can be filed by the defendant of a lawsuit?
A) complaint
B) answer
C) reply
D) injunction
45) In which of the following cases does a class action occur?
A) There are no factual disputes to be decided by the jury.
B) The defendant has multiple grounds for appeal.
C) A group of plaintiffs collectively bring a lawsuit against a defendant.
D) The plaintiff does not reply to the defender’s cross-complaint.
46) Which of the following statements is true about the pretrial litigation process?
A) To initiate a lawsuit, the plaintiff must file an appeal in the proper court.
B) If the plaintiff does not answer a complaint, a default judgment is entered against him or her.
C) A plaintiff files a cross-complaint against the defendant to seek damages.
D) A default judgment establishes the defendant’s liability.
47) The statute of limitations establishes the period within which ________.
A) a plaintiff must bring a lawsuit against a defendant
B) a defendant must file a written answer against a plaintiff’s complaint
C) a defendant can file a cross-complaint against the plaintiff
D) a motion for judgment on the pleadings can be made by either party
48) The state of Idaho has a two-year statute of limitations for personal injury actions. Graham
was injured by Alice in a car accident on January 1, 2011. If Graham wants to bring a lawsuit
against Alice on January 15, 2013, which of the following is most likely to be the outcome?
A) Graham is allowed to sue Alice after appealing for an extension of the statue of limitations.
B) Graham is not allowed to sue Alice, having lost his right to sue her.
C) Graham can sue Alice but will not receive damages.
D) Graham can sue Alice but is not entitled to a jury trial.
49) The term ________ refers to the oral testimony given by a party or witness prior to trial.
A) class action
B) deposition
C) interrogatory
D) intervention
50) Which of the following statements is true of deposition?
A) A deposition has to be a written statement.
B) A witness’ deposition is voluntary and not pursuant to a court order.
C) Deposition is given post trial.
D) A deponent is given a chance to correct his or her deposition.
51) ________ are written questions submitted by one party to a lawsuit to another party.
A) Depositions
B) Rejoinders
C) Interrogatories
D) Summons
52) Which of the following motions asserts that there are no factual disputes to be decided by the
jury, and that the judge can apply the proper law to the undisputed facts and decide the case
without a jury?
A) motion for summary judgment
B) motion for judgment on the pleadings
C) motion for a directed verdict
D) motion for judgment notwithstanding the verdict
53) A ________ alleges that if all the facts presented in the paperwork filed with the court to
initiate or respond to the lawsuit are true, the party making the motion would win the lawsuit
when the proper law is applied to these facts.
A) motion for judgment on the pleadings
B) motion for summary judgment
C) motion for judgment notwithstanding the verdict
D) motion to set aside judgment
54) What is the purpose of a pretrial hearing?
A) requesting the other party to produce all documents relevant to the case
B) assessing the factual accuracy of the deposition of witnesses
C) instructing the judge to decide the case without a jury
D) facilitating the settlement of a case before it goes to trial
55) Which of the following statements is true of a court trial?
A) All civil cases are tried with a jury.
B) The judge is the trier of fact in a jury trial.
C) A jury is not required in a trial unless both parties request one.
D) Prospective jurors are questioned by lawyers for each party.
56) ________ is the process whereby the judge and attorneys ask prospective jurors questions to
determine whether they would be biased in their decisions.
A) Consolidation
B) Trial of fact
C) Voir dire
D) Intervention
57) What is direct examination?
A) inspection and verification of all documents related to a trial by the judge
B) inspection and verification of all documents related to a trial by the jurors
C) witnesses being questioned by the plaintiff’s attorney
D) prospective jurors being questioned by the judge or lawyers of each party
58) What is cross-examination?
A) inspection of evidence by the trier of facts
B) prospective jurors being questioned by the judge or lawyers of each party
C) witnesses being questioned by the plaintiff’s attorney
D) witnesses being questioned by the defendant’s attorney
59) Which of the following statements best describes re-direct examination?
A) The plaintiff’s attorney questions the witness who was questioned by the defendant’s attorney
B) The plaintiff’s attorney questions the witness before he or she is questioned by the defendant’s
attorney.
C) The defendant’s attorney questions the witness who was questioned by the plaintiff’s attorney.
D) The defendant’s attorney questions the witness before he or she is questioned by the plaintiff’s
attorney.
60) Which of the following statements is true of the plaintiff’s case?
A) The plaintiff’s attorney examines the witnesses during cross-examination.
B) The defendant’s attorney examines the witnesses during re-direct examination.
C) The defendant’s attorney can ask questions only about the subjects that were brought up
during the direct examination.
D) Documents and other evidence have to be introduced before the first witness is subject to
direct examination.
61) After the defendant’s attorney has finished calling witnesses, the plaintiff’s attorney can call
witnesses and put forth evidence to disprove the defendant’s case. This is called a ________.
A) rebuttal
B) rejoinder
C) closing argument
D) deliberation
62) During a ________, the defendant’s attorney can call additional witnesses and introduce
other evidence to counter the rebuttal.
A) closing argument
B) rejoinder
C) cross-examination
D) re-direct examination
63) What are jury instructions?
A) instructions from the jury to the plaintiff’s attorney about settling a case before trial
B) instructions from jury informing the judge on what grounds the case can be dismissed
C) instructions to the jury from both parties over the duration within which the case has to be
settled
D) instructions to inform the jury about what law to apply when they decide the case
64) What is jury deliberation?
A) jurors re-questioning a particular witness from one of the parties
B) jurors considering the evidence and attempting to reach a decision
C) jury and the judge disagreeing on the outcome of the case
D) jurors being replaced in case of illness or disqualification
65) Which of the following terms refers to the overturn of verdict when jury misconduct is
detected?
A) remittitur
B) judgment notwithstanding the verdict
C) motion for summary judgment
D) motion for judgment on the pleadings
66) In a civil case John Deer vs. Jane Doe, the judge finds that the jury was swayed by the fact
that Jane Doe was a woman when passing the verdict in her favor. Owing to this, the judge
reduces the damages awarded to Jane by $20,000. This act is called ________.
A) remittitur
B) judgment notwithstanding the verdict
C) motion for summary judgment
D) motion for judgment on the pleadings
67) Which of the following statements is true about appeals?
A) Only the plaintiff can appeal the court’s decision in a civil case.
B) Only the defendant can appeal the court’s decision in a criminal case.
C) An appeal can be made before the trial court gives its final judgment.
D) An appellate court cannot reverse a lower court’s decision.
68) The appealing party in an appeal is called a(n) ________.
A) appellate
B) appellee
C) respondent
D) petitioner
69) Which of the following statements is true about appellate courts?
A) Appellate courts cannot reverse a finding of fact made by the jury.
B) Appellate courts cannot reverse a finding of fact made by the judge.
C) Appellate courts permit brief oral arguments between attorneys.
D) An appellate court cannot reverse a decision of a lower court.
70) Which of the following is a method of alternative dispute resolution?
A) pretrial hearing
B) settlement conference
C) appeal
D) fact- finding
71) Rita Fuller and Robert Morgan are contending parties to a lawsuit involving the division of
their inheritance from their grandmother. They wish to settle their case out of court. Rita and
Robert engage in discussions and bargaining with the presence of their attorneys and finally
conclude that Robert keeps 60 percent of the inheritance while Rita gets the remainder. In this
scenario, the ________ method of alternative dispute resolution is used.
A) negotiation
B) arbitration
C) mini-trial
D) mediation
72) Which of the following statements best represents the distinction between binding and
nonbinding arbitration?
A) Unlike nonbinding arbitration, binding arbitration takes place at a court, in the presence of a
judge.
B) If the arbitration is nonbinding, the decision and award of the arbitrator can be appealed to the
courts.
C) A nonbinding arbitration takes place at a court, in the presence of the jury.
D) A nonbinding arbitration implies that the arbitrator’s decision must be reinforced by the
courts.
73) Which of the following statements is true about the Federal Arbitration Act (FAA) of 1925?
A) The FAA restricts parties from obtaining a court order to compel arbitration with an
arbitration agreement.
B) The FAA restricts federal courts from hearing issues of law that have been decided by an
arbitrator.
C) The FAA provides that arbitration agreements involving commerce are revocable contracts
under ordinary circumstances.
D) Breach of contract cases and tort claims are not candidates for arbitration as per the FAA.
74) In which of the following methods of alternative dispute resolution must parties to a case
employ a neutral third party to settle their dispute?
A) negotiation
B) mini-trial
C) e-court
D) fact-finding
75) A(n) ________ is a voluntary private proceeding in which lawyers for each side present a
shortened version of their case to the representatives of both sides.
A) pretrial hearing
B) arbitration
C) mini-trial
D) appeal
76) Briefly explain the steps involved in the pretrial litigation process.
77) Why are pretrial hearings necessary, especially if both parties have pursued the lawsuit with
full knowledge?
78) Differentiate between trials with and without jury.
79) What can a party to a lawsuit do if he or she is displeased with the trial court’s judgment?
80) If two parties to a lawsuit can afford the finances to conduct a mini-trial, would it not be
beneficial for them to conduct a complete court trial instead?