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1. Few corporate lawsuits are settled or dismissed before they go to trial.
1. A mini-trial is a private proceeding in which each party’s attorney
argues the party’s case before the other party.
1. Mediation is adversarial in nature.
1. Mediation is not without disadvantages.
1. In mediation, the mediator proposes a solution that includes what com-
promises are necessary to reach an agreement.
1. In arbitration, the third party’s decision may, or may not, be legally
binding.
1. A submission occurs when one of the parties to arbitration agrees to
give up his or her claims.
1. Most states do not enforce agreements to arbitrate disputes between
private parties.
1. Mandatory arbitration clauses in employment contracts are generally
enforceable.
1. A compulsory arbitration in a consumer contract may be
unconscionable.
1. An arbitrator’s award will not be set aside simply because the
arbitrator let only one side argue its case.
1. An arbitrator’s fact-findings and legal conclusions are normally final.
1. A court will not review whether an arbitrator’s award is valid.
1. An arbitrator’s award may be set aside if the arbitrator accepted a
bribe.
1. A summary jury trial is not a “mock” trial, but a short, actual trial.
1. The verdict in a summary jury trial is only advisory.
1. The goal of mediation is to work out a resolution that benefits both
sides to a dispute.
1. The online negotiation of a dispute is generally simpler and more
practical than litigation.
1. A choice-of-law clause designates the jurisdiction for the litigation
of disputes arising under a contract.
1. Arbitration clauses are often found in contracts governing the interna-
tional sale of goods.
1. Milo files a suit against Otis. At the trial, each party’s attorney presents
the party’s case before a judge who hears the dispute and renders a
legally binding decision. This is
a. a mini-trial.
b. a summary jury trial.
c. litigation.
d. not a legitimate form of dispute resolution.
1. Jackson files a suit against Lance. Before going to trial, the parties,
with their attorneys, meet to try to resolve their dispute. A third party
suggests or proposes a resolution, which the parties may or may not
decide to adopt. This is
a. arbitration.
b. mediation.
c. negotiation.
d. not a legitimate form of dispute resolution.
1. Donatello files a suit against Erasmus. Before going to trial, the
parties meet, with their attorneys to represent them, to try to resolve their dis-
pute without the involvement of a third party. This is
a. arbitration.
b. mediation.
c. negotiation.
d. not a legitimate form of dispute resolution.
1. Lamont files a suit against Melvin. 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 renders a legally binding deci-
sion. This is
a. arbitration.
b. mediation.
c. negotiation.
d. not a legitimate form of dispute resolution.
1. Morsels Restaurant, Inc., and Nature Foods Corporation dispute a term
in their contract.Refer to Fact Pattern 3-1B. A faster settlement of the
dispute between Morsels and Nature may be reached through
a. arbitration because the case will be heard by a mini-jury.
b. litigation because few disputes actually go to trial.
c. mediation because the parties can minimize the procedural rules.
d. negotiation because the dispute will be resolved by an expert.
1. Morsels Restaurant, Inc., and Nature Foods Corporation dispute a term
in their contract.Refer to Fact Pattern 3-1B. Oona, a third party,
resolves the dispute between Morsels and Nature. In most states, Oona
must issue an award or decision in writing
a. if the resolution involved arbitration.
b. if the resolution involved mediation.
c. if the resolution involved negotiation.
d. under no circumstances
1. QuikSet Concrete Company and Rocky’s Quarry, Inc., agree in writing
to submit a dispute to arbitration. The Uniform 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. Jane and Kristy sign a contract that provides that if a dispute arises,
they will submit to arbitration. A dispute arises, but before it goes to
arbitration, Jane files a suit against Kristy. The court will likely
a. hear the suit and then order the parties to arbitrate.
b. hear the suit without ordering the parties to arbitrate.
c. order relief without hearing the suit or compelling the parties to
arbitrate.
d. order the parties to arbitrate.
1. Quinn and Ridgeline Cablevision Company engage in litigation. A dis-
tinguishing feature of judicial dispute resolution is that
a. all aspects of the proceeding can be done online.
b. a face-to-face presentation is required but not in a specific
location.
c. a physical presence is required in a specific location.
d. no part of the process can be done online.
1. Seaside Hotels, Inc., adopts an alternative dispute resolution (ADR) pro-
gram. Tess, a current employee, signs an agreement under which arbi-
tration is subject to “Seaside’s rules, with the employee to bear all
costs of the proceeding.” When a dispute arises, Tess refuses to
arbitrate. Seaside files a suit to compel arbitration. The court will most
likely
a. order arbitration according to Seaside’s rules.
b. order arbitration but suspend Seaside’s rules.
c. refuse to order arbitration if Seaside refuses to split the costs.
d. refuse to order arbitration if Tess lacks the ability to pay.
1. Fair Trade Company and Good Shipping. Inc., have their dispute re-
solved in arbitration. The arbitrator meets with Fair’s representative to
discuss the dispute outside the presence of Good’s representative,
before determining the award. If this meeting substantially prejudiced
Good’s rights, a court will most likely
a. do nothing.
b. review the merits of the dispute.
c. review the sufficiency of the evidence.
d. set aside the award.
1. EZ Assembly, Inc., and Factory Outlet Stores have their dispute
resolved in arbitration. The arbitrator makes a mistake in a conclusion
of law. 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. Little Shops, Inc., and Mega Stores Corporation ask an arbitrator to re-
solve their dispute, which involves a matter of significant public con-
cern. 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. Owen, in Pennsylvania, and Quay Docks, Inc., in Maryland agree to
have their dispute resolved in arbitration according to the law of
Virginia. 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. O’Reilly files a suit against Petrarch. They meet, and each party’s attor-
ney 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 en-
courage them to settle their dispute. This is
a. a mini-trial.
b. a summary jury trial.
c. court-ordered arbitration.
d. early neutral case evaluation.
1. Mikhail and Nika engage in online dispute resolution (ODR). A distin-
guishing feature of ODR is that
a. all aspects of the proceeding can be done online.
b. a face-to-face presentation is required but not in a specific
location.
c. a physical presence is required in a specific location.
d. no part of the process can be done online.
1. To resolve a dispute between Jo in Kansas City and Luc in Miami,
NetServ, like most online dispute resolution (ODR) services, would
apply the law of
a. the jurisdiction in which the complainant is located.
b. the jurisdiction in which the respondent is located.
c. the jurisdiction in which the ODR service is located.
d. none of the choices.
1. To resolve a dispute, Ripley in South Dakota and Tyler in Utah utilize
Virtual Solution, 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.
1. Velvety Pancake House, Inc., a U.S. firm, and Wallaby Waffles, Ltd., an
Australian firm, enter into a contract that does not have a forum-
selection or choice-of-law clause. Litigation between Velvety and
Wallaby over a dispute involving this contract may occur in
a. Australia only.
b. Australia or the United States, but not both.
c. Australia, the United States, or both.
d. the United States only.
1. A clause in a contract between Tall Timber Corporation, a U.S. firm,
and Wang Woods, Ltd., a Japanese firm, specifies that disputes over
the contract will be adjudicated in the United States. This is
a. a domestic-dispute clause.
b. a forum-selection clause.
c. an adjudication clause.
d. an arbitration clause.
1. Simplex Corporation agrees to deliver a certain grade of silicon to
TruTools Company. When the silicon arrives, TruTools claims that it is
an inferior grade. The parties submit their dispute to Uri, an arbitrator
who is an expert in the silicon industry. Who sets the rules for an
arbitration proceeding? Are these rules likely to be less restrictive or
more restrictive than the rules governing a court proceeding? Why?
1. Nolan contracts with Onsite Games, Inc., to deliver a quantity of video
and computer games to Nolan’s Play+Trade Game Store. At the time
for delivery—just before the beginning of the annual gift-giving season—
they disagree over the number, the price, and the quality of the games.
Nolan files a suit against Onsite in a state court. The state requires
that the dispute be submitted to court-annexed arbitration. What is the
difference between voluntary arbitration and court-annexed arbitration? If
the dispute is not resolved, or if either party disagrees with the decision
of the arbitrator, will a court hear the case? Explain.
