58) List what should be included in a drafter’s “checklist” for ensuring that a mandatory
arbitration clause is not unconscionable.
59) What are the common uses of arbitration?
60) Why is an arbitrator’s decision likely to be a compromise?
61) Why does the Federal Arbitration Act (FAA) want to limit a court’s power over an arbitration
award?
62) ________ is presided over by a neutral adviser, but the settlement authority resides with
senior executives of the disputing corporations.
A) Non-binding arbitration
B) Binding arbitration
C) A minitrial
D) Mediation
63) Who has settlement authority in a minitrial?
A) senior executives of the disputing corporations
B) the attendant trial court judge
C) the attendant appellate court judge
D) the minijury
64) 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.
65) 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.
66) A modification of ________ 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) a minitrial
B) mediation
C) negotiation
D) early neutral case evaluation
67) 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.
68) 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.
69) 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
70) The settlement authority of a minitrial resides with the neutral adviser.
71) In ________, parties select a neutral third party and explain their respective positions to this
third party, who then evaluates the strengths and weaknesses of their cases. This evaluation
guides the parties in reaching a settlement.
A) binding arbitration
B) non-binding arbitration
C) mediation
D) early neutral case evaluation
72) The neutral third party in ________ provides an opinion on the strengths and weaknesses of
a case.
A) a private trial
B) early neutral case evaluation
C) arbitration
D) litigation
73) In ________ trials, cases are tried by a(n) ________ selected and paid for by the disputants.
A) private; referee
B) private; arbitrator
C) public; referee
D) public; arbitrator
74) ________ 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
75) 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.
76) 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
77) 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
78) 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 a 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.
79) 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 trial
B) arbitration
C) mediation
D) summary jury trial
80) 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 trial
B) arbitration
C) summary jury trial
D) negotiation and settlement
81) In a private trial, the referee is empowered by statute to enter a legally binding judgment.
82) According to critics, what are the negative consequences of the use of private trials?
83) Which of the following is not part of a summary jury trial?
A) an abbreviated trial
B) a nonbinding jury verdict
C) an intermediate appeal
D) a settlement conference
84) The primary advantage of a summary jury trial is that it lasts only ________.
A) one day
B) two days
C) three days
D) one week
85) 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
86) 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.
87) 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.
88) 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.
89) 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
90) If a dispute goes to trial, statements made in the summary jury trial can be used as evidence.
91) A summary jury trial generally consists of 24 people.
92) The jurors of a summary jury trial are not usually aware that their decision does not have a
binding effect.
93) A summary jury trial lasts only one day.
94) 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.
95) 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.
96) The federal circuit courts had already implemented ADR programs before Congress enacted
the ADR Act of 1998.
97) ADR programs cannot be used at the appellate level.
98) Explain how various states differ in their encouragement of the use of ADR methods.
99) 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.
100) Explain why there are concerns regarding the neutrality of dispute resolution firms.
101) How many countries currently belong to the United Nations Convention on the Recognition
and Enforcement of Foreign Arbitral Awards?
A) 34
B) 47
C) 73
D) 112
102) The United Nations Convention on the Recognition and Enforcement of Foreign Arbitral
Awards is commonly referred to as the ________ Convention.
A) New York
B) Paris
C) London
D) Munich
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103) Which of the following is not an organization that provides alternative dispute resolution
services for firms of different nations?
A) the United Nations Commission of International Trade Law
B) the London Court of International Arbitration
C) the Munich Tribunal of International Mediation
D) the International Chamber of Commerce