Question 1

Courts are generally critical and unsupportive of ADR methods.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not a form of ADR?

Accepted Answer

A)   Mediation
B)   Litigation
C)   Negotiation
D)   Arbitration
E)   Summary jury trialF) A) and B)
G) A) and C) B

Question 3

[Sexual harassment ADR] Naomi works at a fast-food restaurant which is owned by an international company located in Mexico. Naomi is very angry with her supervisor, who has been making inappropriate sexual comments to her and other employees. Naomi decides to sue and retains a lawyer, Dominic. Dominic talks with the owners of the restaurant and is informed that Naomi signed an agreement to mediate and also to arbitrate any claims. Naomi informed Dominic about other employees who entered into such agreements and later complained of harassment. Dominic promises her that under federal law, he is legally entitled to get copies of all documents used during any other mediations and arbitrations and that he is also entitled to get detailed information regarding what was said and agreed upon by them. Dominic also tells Naomi that, while he is not going to bring it up now, if they so choose, Dominic and Naomi can avoid the arbitration agreement because under a new federal law, such agreements cannot be enforced if one of the companies involved is internationally based. He also tells Naomi in response to her question about the possibility of mediation in her case to forget it, because mediation is pretty much the same thing as arbitration. Dominic tells Naomi that an option is to arbitrate and, if the outcome is bad at arbitration, file a court action in federal court. Dominic says that the federal court judge would not consider an arbitrator's decision in making a determination.
-Was Dominic correct when he told Naomi that if she lost at the arbitration level, a federal judge would consider the case anew without consideration of the arbitration agreement?

Accepted Answer

A)   Yes, because an action in court is considered completely separate from an arbitration proceeding.
B)   Yes, but only if Naomi filed an "Intent to Seek Further Relief" form with the arbitrator.
C)   No, because the arbitration agreement would completely bar Naomi's ability to file a court action.
D)   No, because in a later court action, a federal judge in district court would only reverse an arbitrator's decision for certain reasons such as that the arbitrator displayed bias or corruption.
E)   Dominic is correct only because an international company is involved.F) All of the above
G) A) and B)

Question 4

If a party does not abide by an agreement reached in mediation, which of the following is true of the remedy?

Accepted Answer

A)   Because mediation is a voluntary process, there is no legal remedy.
B)   The remedy is to return to mandatory mediation.
C)   The remedy is to proceed to arbitration.
D)   The remedy is to sue for breach of contract.
E)   The remedy is to proceed to a minitrial.F) C) and E)
G) B) and E)

Question 5

[MegaTron] Emilia filed a charge of discrimination with the Equal Employment Opportunity Commission (EEOC) , alleging that her employer, MegaTron, failed to promote her because of her nationality and gender. The EEOC had already received several discrimination charges from other employees alleging similar conduct by MegaTron. When Emilia was hired, she signed an employment contract with a clause stating that all work-related claims must be resolved through arbitration.
-If the EEOC filed an enforcement lawsuit based on the allegations of Emilia and other employees, what would a court likely do?

Accepted Answer

A)   Dismiss the lawsuit, because of Emilia's poor performance.
B)   Dismiss the lawsuit because of the binding arbitration clause in Emilia's employment contract.
C)   Allow the lawsuit to move forward, as long as Emilia gets no relief whatsoever.
D)   Allow the lawsuit to move forward because the EEOC is not a party to the employment contract, and it has the authority to pursue relief for Emilia regardless of how the employer and employee agreed to resolve their disputes.
E)   Allow the lawsuit because arbitration clauses in employment contracts are unconscionable.F) All of the above
G) A) and C)

Question 6

In which of the following do parties select a neutral third party and explain their respective positions to this neutral, who then evaluates the strengths and weaknesses of the case?

Accepted Answer

A)   Summary jury trial
B)   Med-arb
C)   Early neutral case evaluation
D)   Private trials
E)   Neutral submissionF) A) and D)
G) A) and C)

Question 7

Which of the following is true in regard to precedent in relation to law in general and arbitration?

Accepted Answer

A)   Like the law in general, the law governing arbitration agreements is not a fixed set of rules or precedents.
B)   Unlike the law in general, the law governing arbitration agreements is a fixed set of rules or precedents.
C)   Law in general has a fixed set of rules or precedents, but the law governing arbitration is not a fixed set of rules or precedents.
D)   Both the law in general and the law of arbitration operate within a fixed set of rules and precedents.
E)   Both the law in general and the law of arbitration have a fixed set of precedents except in the area of consumer law in which there is no fixed set of law or precedents.F) None of the above
G) C) and D)

Question 8

[Pet Pics] Ari went to work as an independent contracting photographer for Wild Pet Pics, a company specializing in photographing exotic pets, such as monkeys and snakes, with their owners. The company's home office was in California, but Ari worked in Florida. Before he started work, Ari signed an agreement to arbitrate any dispute he had with the company. The arbitration agreement provided that in the event of a dispute, Ari would completely cover the cost of the arbitration; that he could only receive up to $150 in damages regardless of his claims, punitive or otherwise; and that any arbitration would be conducted at the company's home office. The agreement also provided that the arbitrator was not bound to strictly follow the official court rules of evidence. Ari signed the agreement because he really needed a job and liked animals. His only previous animal photography experience, however, had been with cats and dogs. Ari's contract provided that he would be paid $100 per shoot and that the company would take steps to ensure his safety. One day he was called in to photograph a skunk and its owner. He was told by the receptionist at Wild Pet Pics that the skunk had been altered so that it could not spray. Ari felt safe. Unfortunately, the skunk had not been altered. Just as he was starting to shoot, the skunk became upset. It ran towards Ari, sprayed Ari, and in the resulting commotion, Ari's expensive camera was knocked over and broken. Plus, Ari's clothes were ruined and he stank for days. Ari wants to sue Wild Pet Pics for $5,000 to cover the cost of his camera, his clothing, and his general smelliness for several days. Ari says that he cannot afford to pay for the arbitration.
-How will the provision requiring that Ari pay the costs of the arbitration affect the agreement?

Accepted Answer

A)   It will have no effect because Ari signed the agreement, and he is bound by it.
B)   Ari will be bound by the provision because while under federal law he had three days in which to back out of the agreement, he did not do so.
C)   Ari will be bound by the agreement unless he testifies that he did not read it.
D)   Ari will be bound by the agreement unless he can prove that he was orally promised it would not be enforced.
E)   The provision has the effect of weakening the agreement, as a court would likely refuse to enforce it.F) A) and B)
G) A) and C)

Question 9

What was the result in the Case Opener in which an employee of Hooters complaining of sexual harassment attempted to avoid enforcement of a signed arbitration agreement?

Accepted Answer

A)   The court fully enforced the arbitration agreement as it was written.
B)   The court required that Hooters rewrite the arbitration agreement, and it was then enforced.
C)   The court itself rewrote the arbitration agreement, and it was then enforced.
D)   The court enforced the arbitration agreement in part, but required, contrary to the agreement, that Hooters provide the employee the specifics of its defenses at least 5 days before the commencement of the arbitration.
E)   The arbitration agreement was not enforced by the court.F) A) and E)
G) None of the above

Question 10

A provision in a contract that mandates that all disputes arising under the contract must be settled by arbitration is called a[n] ________.

Accepted Answer

A)   Binding arbitration clause
B)   Court-annexed arbitration clause
C)   Approved mediation/arbitration clause
D)   Consolidated merger clause
E)   ADR neutral clauseF) B) and C)
G) C) and D)

Question 11

Sofia tells Gordon she wants to arbitrate their dispute. Gordon tells Sofia that if the arbitrator does not rule in her favor, they can appeal, but it is very difficult to overturn the decision of an arbitrator. Is Gordon correct?

Accepted Answer

A)   Yes, courts give extreme deference to arbitrators' decisions.
B)   No, arbitration decisions are final and binding.
C)   No, arbitration decisions are held to the same standard as a judge's ruling.
D)   No, arbitration decisions are often overturned because many arbitrators do not have a background in law.
E)   Yes, an arbitrator's decision is difficult to overturn because courts often do not have jurisdiction over a private arbitration.F) D) and E)
G) C) and D)

Question 12

[Jade Shoes] Coleman owns a sporting goods store and has purchased top-quality, brand-name athletic shoes from Jade's Shoe Distribution for many years, but they have no written contract in place. Last month, Coleman learned that the latest shipment from Jade's are not authentic, brand-name shoes but instead a knock-off brand that costs a fraction of the price Coleman pays. Coleman cannot sell these shoes because his customers would know the difference, and Coleman demanded Jade refund him. Jade sent Coleman a written request for arbitration within thirty days. In response, Coleman called Jade, threatening to file a lawsuit against Jade and exposing her company as a fraud. Jade laughs, saying Coleman is required to arbitrate their dispute within thirty days.
-If Coleman and Jade agree to arbitrate their dispute with the American Arbitration Association, which of the following statements would be false about their selection of an arbitrator?

Accepted Answer

A)   The American Arbitration Association will send the parties a list of potential arbitrators.
B)   A retired CEO is not permitted to arbitrate because she has not attended law school.
C)   A person with no experience in running a business can still be an arbitrator.
D)   The general qualifications for being an arbitrator are honesty, impartiality, and subject-matter competence.
E)   Arbitrators are expected to follow the Arbitrator's Code of Ethics.F) C) and E)
G) B) and C)

Question 13

[Sexual harassment ADR] Naomi works at a fast-food restaurant which is owned by an international company located in Mexico. Naomi is very angry with her supervisor, who has been making inappropriate sexual comments to her and other employees. Naomi decides to sue and retains a lawyer, Dominic. Dominic talks with the owners of the restaurant and is informed that Naomi signed an agreement to mediate and also to arbitrate any claims. Naomi informed Dominic about other employees who entered into such agreements and later complained of harassment. Dominic promises her that under federal law, he is legally entitled to get copies of all documents used during any other mediations and arbitrations and that he is also entitled to get detailed information regarding what was said and agreed upon by them. Dominic also tells Naomi that, while he is not going to bring it up now, if they so choose, Dominic and Naomi can avoid the arbitration agreement because under a new federal law, such agreements cannot be enforced if one of the companies involved is internationally based. He also tells Naomi in response to her question about the possibility of mediation in her case to forget it, because mediation is pretty much the same thing as arbitration. Dominic tells Naomi that an option is to arbitrate and, if the outcome is bad at arbitration, file a court action in federal court. Dominic says that the federal court judge would not consider an arbitrator's decision in making a determination.
-Assuming the Uniform Mediation Act applies, did Dominic correctly tell Naomi that mediation is nearly the same as arbitration?

Accepted Answer

A)   No, he was incorrect. There are major differences between mediation and arbitration.
B)   He was correct because the only difference between the two involves the length of the proceeding.
C)   He was correct because the only difference between the two involves cost.
D)   He was correct because the only difference between the two involves whether a court reporter is present.
E)   He was correct because the only difference between the two involves the type of evidence that may be considered.F) B) and D)
G) A) and C)

Question 14

[MegaTron] Emilia filed a charge of discrimination with the Equal Employment Opportunity Commission (EEOC) , alleging that her employer, MegaTron, failed to promote her because of her nationality and gender. The EEOC had already received several discrimination charges from other employees alleging similar conduct by MegaTron. When Emilia was hired, she signed an employment contract with a clause stating that all work-related claims must be resolved through arbitration.
-If, after filing her charge of discrimination with the EEOC, Emilia then filed a discrimination lawsuit against MegaTron, what would the court most likely do?

Accepted Answer

A)   Dismiss the lawsuit, because of Emilia's poor performance.
B)   Dismiss the lawsuit because of the binding arbitration clause in her employment contract.
C)   Allow the lawsuit to move forward because employees have a right to file a lawsuit.
D)   Allow the lawsuit because Emilia did not foresee she might suffer discrimination.
E)   Allow the lawsuit because arbitration clauses in employment contracts are not binding on employees.F) All of the above
G) C) and E)

Question 15

Which of the following is true regarding arbitration in Brazil?

Accepted Answer

A)   Brazilian lawmakers have reformed several articles in the Brazilian Civil Code to increase the practice of arbitration.
B)   Parties must sign an "arbitration commitment" recognizing that the parties agree that any decision must be appealed to the judiciary branch of government.
C)   Because of a commitment by legislators to reduce arbitrations, parties may only arbitrate family law matters.
D)   Because of a commitment by legislators to reduce arbitrations, parties may only arbitrate corporate law matters.
E)   Arbitration is outlawed in Brazil.F) A) and E)
G) A) and B)

Question 16

Private companies do not use mediation to resolve internal disputes with employees.

Accepted Answer

A) True 
 B)False

Question 17

[Jade Shoes] Coleman owns a sporting goods store and has purchased top-quality, brand-name athletic shoes from Jade's Shoe Distribution for many years, but they have no written contract in place. Last month, Coleman learned that the latest shipment from Jade's are not authentic, brand-name shoes but instead a knock-off brand that costs a fraction of the price Coleman pays. Coleman cannot sell these shoes because his customers would know the difference, and Coleman demanded Jade refund him. Jade sent Coleman a written request for arbitration within thirty days. In response, Coleman called Jade, threatening to file a lawsuit against Jade and exposing her company as a fraud. Jade laughs, saying Coleman is required to arbitrate their dispute within thirty days.
-When addressing which tips would be helpful in creating a binding arbitration clause, the text authors suggest what?

Accepted Answer

A)   The clause should treat both parties as if they understand the law and should be signed in front of a notary.
B)   The clause should always dictate that the arbitration will be performed in a certain location so that both parties know.
C)   The clause should be bilateral, clear, state which party pays the fees, and specify how the arbitrator will be selected.
D)   The clause should allow that if the arbitration award is not approved by both parties, the parties can then mediate the dispute instead.
E)   The clause should always limit the remedies the parties can receive.F) B) and E)
G) None of the above

Question 18

[Salsa Sensations] Sofia, co-owner of a popular dance club called Salsa Sensations, discovered her co-owner and best friend, Renata, has been secretly pocketing cash receipts. Salsa Sensations' business is booming. Sofia meets Gordon, an attorney. Gordon advises Sofia that she should engage in ADR instead of filing a lawsuit against Renata because it would be faster and cheaper than litigation.
-Which of the following would typically not be part of a mediation between Sofia and Renata?

Accepted Answer

A)   Both parties agree to the selection of the mediator.
B)   Both parties provide their view of the case to the mediator.
C)   The mediator assists in finding a resolution.
D)   The mediator makes a binding ruling.
E)   The mediator assists in drafting the contract.F) A) and B)
G) A) and C)

Question 19

[Sexual harassment ADR] Naomi works at a fast-food restaurant which is owned by an international company located in Mexico. Naomi is very angry with her supervisor, who has been making inappropriate sexual comments to her and other employees. Naomi decides to sue and retains a lawyer, Dominic. Dominic talks with the owners of the restaurant and is informed that Naomi signed an agreement to mediate and also to arbitrate any claims. Naomi informed Dominic about other employees who entered into such agreements and later complained of harassment. Dominic promises her that under federal law, he is legally entitled to get copies of all documents used during any other mediations and arbitrations and that he is also entitled to get detailed information regarding what was said and agreed upon by them. Dominic also tells Naomi that, while he is not going to bring it up now, if they so choose, Dominic and Naomi can avoid the arbitration agreement because under a new federal law, such agreements cannot be enforced if one of the companies involved is internationally based. He also tells Naomi in response to her question about the possibility of mediation in her case to forget it, because mediation is pretty much the same thing as arbitration. Dominic tells Naomi that an option is to arbitrate and, if the outcome is bad at arbitration, file a court action in federal court. Dominic says that the federal court judge would not consider an arbitrator's decision in making a determination.
-Is Dominic correct that a federal law provides that arbitration agreements involving international businesses are unenforceable?

Accepted Answer

A)   He is partially correct. The law only applies to any country not a party to the North American Free Trade Agreement.
B)   He is partially correct. The law only applies to any country that has signed the North American Free Trade Agreement.
C)   He is partially correct. The law only applies to European countries.
D)   He is incorrect.
E)   He is correct.F) D) and E)
G) All of the above D

Question 20

Which of the following could be a result of mediation?

Accepted Answer

A)   After the mediator issues a binding ruling, Sofia and Renata draft an agreement.
B)   After the mediator issues a binding ruling, Sofia can appeal.
C)   After the mediator issues a binding ruling, Sofia cannot appeal.
D)   The mediator could issue a binding ruling against Sofia.
E)   Sofia and Renata reach an agreement that could be enforced in court if either party breaches the mediation agreement.F) A) and E)
G) B) and E) E

Exam 4: Alternative Dispute Resolution

Courts are generally critical and unsupportive of ADR methods.

Correct Answer
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Which of the following is not a form of ADR?

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B

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If a party does not abide by an agreement reached in mediation, which of the following is true of the remedy?

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In which of the following do parties select a neutral third party and explain their respective positions to this neutral, who then evaluates the strengths and weaknesses of the case?

Correct Answer
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Which of the following is true in regard to precedent in relation to law in general and arbitration?

Correct Answer
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Correct Answer
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What was the result in the Case Opener in which an employee of Hooters complaining of sexual harassment attempted to avoid enforcement of a signed arbitration agreement?

Correct Answer
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A provision in a contract that mandates that all disputes arising under the contract must be settled by arbitration is called a[n] ________.

Correct Answer
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Sofia tells Gordon she wants to arbitrate their dispute. Gordon tells Sofia that if the arbitrator does not rule in her favor, they can appeal, but it is very difficult to overturn the decision of an arbitrator. Is Gordon correct?

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Which of the following is true regarding arbitration in Brazil?

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Private companies do not use mediation to resolve internal disputes with employees.

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D

Which of the following could be a result of mediation?

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E

Exam 4: Alternative Dispute Resolution

Courts are generally critical and unsupportive of ADR methods.

Correct AnswerverifiedShow Answer

Which of the following is not a form of ADR?

Correct AnswerverifiedB

Correct AnswerverifiedShow Answer

If a party does not abide by an agreement reached in mediation, which of the following is true of the remedy?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In which of the following do parties select a neutral third party and explain their respective positions to this neutral, who then evaluates the strengths and weaknesses of the case?

Correct AnswerverifiedShow Answer

Which of the following is true in regard to precedent in relation to law in general and arbitration?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What was the result in the Case Opener in which an employee of Hooters complaining of sexual harassment attempted to avoid enforcement of a signed arbitration agreement?

Correct AnswerverifiedShow Answer

A provision in a contract that mandates that all disputes arising under the contract must be settled by arbitration is called a[n] ________.

Correct AnswerverifiedShow Answer

Sofia tells Gordon she wants to arbitrate their dispute. Gordon tells Sofia that if the arbitrator does not rule in her favor, they can appeal, but it is very difficult to overturn the decision of an arbitrator. Is Gordon correct?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is true regarding arbitration in Brazil?

Correct AnswerverifiedShow Answer

Private companies do not use mediation to resolve internal disputes with employees.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedD

Which of the following could be a result of mediation?

Correct AnswerverifiedE

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B

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D

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E