Solution Manual
Book Title
Business Law with UCC Applications 14th Edition

978-0077733735 Chapter 4 Solution Manual

April 10, 2019
Chapter 4 Alternative Dispute Resolution
Opening Case Questions
1. The American Arbitration Association tells us that mediation is “a non-binding process where a
neutral third party works with the parties to reach a mutually agreeable settlement.” The neutral third
party is referred to as a mediator. Arbitration is the process by which the parties invite a third party,
5. When the parties uncover negative information about an arbitrator, they have the duty to reveal
CLASSIC CASES--The Case for a Collective Science Court
Special Directions to the Instructor: It is very difficult to determine in advance the wide variety of
answers that students will provide for these very practical questions, especially since the students are
asked to evaluate the abilities of both judges and scientists. Nevertheless, the instructor can look to see
if the students have provided concrete reasons for their positions. For example, a student may believe
Questions for Review and Discussion
2. ADR can provide an economical and efficient alternative to litigation. Depending on the ADR
technique employed, the time involved in settling a dispute can be shortened considerably and the
3. Mediation is advantageous if the parties want be involved in developing the compromises that
result from the process. The mediator can be of great help because he or she can serve as an
4. Arbitration hearings can be set up by the parties themselves. The parties create the ground rules
for choosing the arbitrators, for carrying out discovery, for presenting evidence, for determining the
outcome, and for enforcing the reward, if any. The parties must also set details such as the time and the
5. In a med-arb procedure, the individuals first submit their disagreement to mediation. If mediation
succeeds, the case is over. If, however, some issues are not resolved via mediation, the parties can go to
6. An early neutral evaluator, after examining the details of a case, renders an objective assessment
7. During a summary jury trial, strict time limits are imposed upon the parties. Opening statements
should last no more than twenty minutes. The presentation of each side’s case should take no more than
10. One advantage to the science court is that it would provide a neutral, objective panel that is
highly trained in science and the law. Another advantage is that the science court would not be the last
word but would be subject to appeal. The final advantage is that, in a science court, science based cases
would be centralized in one court streamlining the entire process and giving the judges experience in
handling such cases. One disadvantage to a science court involves the difficulties in securing judges
Cases for Analysis
1. Can the high court of Singapore dismiss Smith even though BFL is quite satisfied with his work
as arbitrator? Yes, the high court of Singapore can easily dismiss Smith even though BFL is satisfied
with his work as arbitrator because local law always trumps the law of an international arbitration
2. The two questions that have yet to be answered are whether the NGOs actually have jurisdiction
3. No. The appellate court should not overrule the trial court’s decision rejecting the requirement
5. ADR clauses are very beneficial to the party with the weakest position within a contractual
relationship. Often, when a dispute does arise, the more powerful party will threaten litigation, secure

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