1. Pretrial mediation is never mandatory.
1. All courts require arbitration before a case goes to trial.
1. Alternative dispute resolution methods are generally less expensive and
time consuming than actual litigation.
1. Assisted negotiation describes proceedings for minors and other parties
who lack contractual “capacity.”
1. Alternative dispute resolution refers to any method for resolving a
dispute outside the court system.
1. Negotiation involves the parties to a dispute, with or without their
attorneys.
1. In early neutral case evaluation, a third party’s evaluation of each
party’s strengths and weaknesses forms the basis for negotiating a
settlement.
1. An arbitrator can render only a legally binding decision.
1. The goal of mediation is to work out a resolution that benefits both
sides.
1. In mediation, a court assigns the mediator.
1. The federal government enforces agreements to arbitrate disputes
between private parties.
1. Virtually any dispute can be the subject of arbitration.
1. On appeal of an arbitrator’s award, a court will look at the merits of
the underlying dispute.
1. A court’s scope of review on the appeal of an arbitrator’s award may
be restricted.
1. An arbitrator’s error in judgment is sufficient to provide a basis for
overturning an award.
1. An arbitrator’s award may be set aside if it was the result of corruption
or fraud.
1. Parties can choose a particular state law to govern their arbitration
agreement.
1. The award in court-annexed arbitration is always binding on the parties.
1. Most online dispute resolution services apply general, universal legal
principles to resolve disputes.
1. A forum–selection clause in a contract designates which nation’s
law will be applied to any dispute.
1. Olivia files a suit against Parker. If this suit is like most cases, it will
be
a. dismissed during a trial.
b. dismissed or settled before a trial.
c. resolved only after a trial.
d. settled at a trial.
1. Shelly and Tom disagree over the amount of money due under their
contract. To avoid involving any third party in a resolution of the
dispute, Shelly and Tom might prefer to use the alternative dispute
resolution method of
a. arbitration.
b. litigation.
c. mediation.
d. negotiation.
1. Ivy files a suit against José. Before going to trial, the parties meet, and
each party’s attorney argues the party’s case before the other party. If
they fail to reach an agreement, a third party renders an opinion as to
how a court would likely decide the dispute. This is
a. a mini-trial.
b. a summary jury trial.
c. early neutral case evaluation.
d. not a legitimate form of dispute resolution.
1. Refer to Fact Pattern 3-1. The least expensive method to resolve the
dispute between Organico and Pleasant Valley may be
a. arbitration because the case will be heard by a mini-jury.
b. litigation because each party will pay its own legal fees.
c. mediation because the dispute will be resolved by a non-expert.
d. negotiation because no third parties are needed.
1. Refer to Fact Pattern 3-1. If Organico and Pleasant Valley have a long–
standing business relationship that they would like to continue, a
preferred method of settling their dispute may be mediation because
a. the case will be heard by a mini-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.
1. Refer to Fact Pattern 3-1. Resolving the dispute between Organico and
Pleasant Valley by having a neutral third party render a binding
decision is one of the advantages of
a. arbitration.
b. facilitation.
c. negotiation.
d. mediation.
1. Pixie files a suit against Quiver. Before going to trial, the parties meet,
with their attorneys to represent them, to present their dispute to a third
party who is not a judge but who imposes a resolution on the parties.
This is
a. arbitration.
b. mediation.
c. negotiation.
d. not a legitimate form of dispute resolution.
1. Salon Products, Inc., and Trim n’ Clip Stylists agree in writing to submit
their dispute to arbitration. The Federal Arbitration Act
a. dictates the terms of the agreement.
b. provides the means for enforcing the agreement.
c. sets out the proper subject matter of the agreement.
d. voids the agreement as a violation of public policy.
1. Chelsea and Dion agree to arbitrate their dispute over the terms for,
and the performance of, a delivery of eggs. The arbitrator’s decision is
called
a. a conclusion of law.
b. a finding of fact.
c. an award.
d. a verdict.
1. TransCorp, Inc., and UniShip, Inc., 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.
1. Deepwell Drilling Service and Eco-Refuge, Inc., agree to have their
dispute resolved in arbitration. The arbitrator makes an erroneous
finding of fact. This is a ground for a court to
a. do nothing.
b. review the merits of the dispute.
c. review the sufficiency of the evidence.
d. set aside the award.
1. Berle, a dairy farmer, and Clover Creamery, Inc., are engaged in court–
annexed arbitration proceedings. The award will be binding on
a. Berle and Clover.
b. neither Berle nor Clover.
c. the losing party only.
d. the prevailing party only.
1. Vince files a suit against Will. Vince and Will 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.
1. Kato and Leilani dispute the quality of a collection of sports
memorabilia sold over the Internet. They agree to resolve this dispute
in 2BRNot2B.com, an online forum. Like most online forums,
2BRNot2B.com applies
a. general, universal legal principles.
b. ICANN’s Rules for Uniform Dispute Resolution Processes.
c. jurisprudence developed by CAN-WIN.
d. the law of California (or another specific U.S. jurisdiction) .
1. All-American Engineering, Inc., disputes the use of “all–american.com”
as a domain name by All-American Export Company. For this dispute,
the Internet Corporation for Assigned Names and Numbers (ICANN)
operates
a. a blog for the public to comment on the issues and the parties.
b. an online arbitration system.
c. a record of all officially approved business names and numbers.
d. special courts in Washington, D.C., and other major cities.
1. Phil submits his claim against Quito to ReSolve.com, a private, online
dispute resolution forum. At any time, an appeal of the dispute to a
court may be made by
a. no one.
b. Phil only.
c. Phil or Quito.
d. ReSolve.com only.
1. Elwin and Financial Funds, Inc., dispute the terms of a certain
investment agreement, over which they engage in online dispute
resolution (ODR). ODR is essentially a form of
a. alternative dispute resolution (ADR).
b. judicial dispute resolution (JDR).
c. traditional dispute resolution (TDR).
d. trial by ordeal (TBO).
1. Rocko Corporation, a U.S. firm, and Siena, S.A., a Columbian firm,
enter into a contract providing that any dispute between them will be
heard in a specific British court. Litigation between Rocko and Siena
over a dispute involving this contract may occur in
a. a Columbian court only.
b. a court in Columbia, the United States, or Great Britain.
c. a U.S. court only.
d. the specified British court only.
1. Global Enterprises, Inc., uses the services of the Internet Corporation
for Assigned Names and Numbers (ICANN). ICANN’s purpose is to
a. arbitrate international commercial disputes between private parties.
b. facilitate the litigation of any cyberspace dispute.
c. focus on the negotiation of any e-commerce dispute.
d. oversee the distribution of domain names.
1. Faraway Sales Corporation, a U.S. firm, and Globe Transport, a Dutch
firm, enter into a contract that includes an arbitration clause. This
clause must provide that the arbitrator will be
a. the American Arbitration Association.
b. the International Chamber of Commerce.
c. the United Nations.
d. any third party.
1. Roy agrees to work as a financial advisor on a commission basis for
Secure Investments, Inc., and signs an employment contract that in–
cludes an arbitration clause. A dispute arises over the amount of Roy’s
commission. Roy files a suit against Secure Investments, seeking
$25,000 in unpaid commissions and $50,000 in other damages. Secure
Investments insists that the parties submit the dispute to arbitration. On
what Roy believes is insufficient evidence, the arbitrator awards Roy
only $500 and issues a written opinion that includes an erroneous
finding of fact and a mistaken conclusion of law. Can Roy successfully
challenge this award in court? Why or why not?
1. Ethanol Products, Inc., and Fuel Oil Corporation submit a dispute to
arbitration. Garth, the arbitrator, is not a judge or a lawyer. How, then,
can Garth’s decision have the force of law and be binding on the
parties involved?