Ch4 Test Bank + Answers Alternative Dispute Resolution and

Business Law with UCC Applications, 15e (Sukys)

Chapter 4 Alternative Dispute Resolution and Cyber-ADR

1) Alternative Dispute Resolution can be expensive because of the initial steps prior to the filing of a lawsuit.

Difficulty: 2 Medium

Topic: A Briefing on Alternative Dispute Resolution (ADR)

Learning Objective: 04-01 Examine the shortcomings of litigation.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

2) Some jurisdictions require litigants to submit to case management hearings and settlement hearings before they can secure a trial date.

Difficulty: 2 Medium

Topic: A Briefing on Alternative Dispute Resolution (ADR)

Learning Objective: 04-01 Examine the shortcomings of litigation.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

3) Because of its cost-effectiveness, ADR is able to address critical social issues that may never reach the judicial system, thus filling in the policy gaps in the evolution of case law and the progression of legislation.

Difficulty: 1 Easy

Topic: A Briefing on Alternative Dispute Resolution (ADR)

Learning Objective: 04-02 List the advantages and the disadvantages of ADR.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

4) Proactive ADR increases the likelihood of litigation.

Difficulty: 2 Medium

Topic: A Briefing on Alternative Dispute Resolution (ADR)

Learning Objective: 04-02 List the advantages and the disadvantages of ADR.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

5) A criminal law case can be resolved by an ADR panel.

Difficulty: 2 Medium

Topic: A Briefing on Alternative Dispute Resolution (ADR)

Learning Objective: 04-02 List the advantages and the disadvantages of ADR.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

6) The Federal Arbitration Act (FAA) is designed to make certain that properly initiated arbitration agreements will be enforced by the courts.

Difficulty: 2 Medium

Topic: A Briefing on Alternative Dispute Resolution (ADR)

Learning Objective: 04-02 List the advantages and the disadvantages of ADR.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

7) Colleagues Sarah and Julia are involved in a dispute and get another colleague, William, to make suggestions about helping them resolve their dispute. This is an attempt at mediation.

Difficulty: 3 Hard

Topic: Responsive ADR Strategies

Learning Objective: 04-03 Identify the advantages of mediation.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

8) Mediation always precedes the filing of a lawsuit.

Difficulty: 2 Medium

Topic: Responsive ADR Strategies

Learning Objective: 04-03 Identify the advantages of mediation.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

9) An arbitrator's decision is always binding and cannot be appealed in court.

Difficulty: 2 Medium

Topic: Responsive ADR Strategies

Learning Objective: 04-04 Explain the nature of an arbitration hearing.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

10) An arbitration hearing must be planned and executed by the court.

Difficulty: 2 Medium

Topic: Responsive ADR Strategies

Learning Objective: 04-04 Explain the nature of an arbitration hearing.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

11) Med-Arb is a process that combines negotiation and mediation to deliver effective results.

Difficulty: 2 Medium

Topic: Responsive ADR Strategies

Learning Objective: 04-05 Outline the med-arb process.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

12) The parties involved in the dispute can use early normal evaluation (ENE) to settle a case or proceed to trial.

Difficulty: 2 Medium

Topic: Responsive ADR Strategies

Learning Objective: 04-06 Relate the role of the early neutral evaluator.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

13) Kin and Mai, through their lawyer, present an abbreviated version of their case to a jury in a single day, and obtain an advisory verdict. This is called a Med-Arb trial.

Difficulty: 3 Hard

Topic: Responsive ADR Strategies

Learning Objective: 04-07 Describe the process of running a summary jury trial.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

14) In a summary jury trial, there is no time limit placed on the parties as this allows them to practice their arguments.

Difficulty: 2 Medium

Topic: Responsive ADR Strategies

Learning Objective: 04-07 Describe the process of running a summary jury trial.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

15) According to the American Arbitration Association, arbitration is "a non-binding process where a neutral third party works with the parties to reach a mutually agreeable settlement."

Difficulty: 1 Easy

Topic: Responsive ADR Strategies

Learning Objective: 04-08 Clarify the private and governmental options available under proactive ADR, and specify the governmental options available under proactive ADR.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

16) Arbitration is a process that establishes supportive relationships among the parties to a contract to head off disputes before they occur.

Difficulty: 2 Medium

Topic: Proactive ADR Strategies

Learning Objective: 04-08 Clarify the private and governmental options available under proactive ADR, and specify the governmental options available under proactive ADR.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

17) Drafting of ADR contract clauses is a proactive attempt to ensure that litigation will be avoided should a dispute arise.

Difficulty: 2 Medium

Topic: Proactive ADR Strategies

Learning Objective: 04-08 Clarify the private and governmental options available under proactive ADR, and specify the governmental options available under proactive ADR.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

18) ADR clauses usually only benefit the employer who has the strongest position within an employment relationship.

Difficulty: 2 Medium

Topic: Proactive ADR Strategies

Learning Objective: 04-08 Clarify the private and governmental options available under proactive ADR, and specify the governmental options available under proactive ADR.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

19) Negotiated rule making is a process by which an agency invites the people and the organizations who will be affected by a new rule to have input into the writing of that rule.

Difficulty: 2 Medium

Topic: Proactive ADR Strategies

Learning Objective: 04-08 Clarify the private and governmental options available under proactive ADR, and specify the governmental options available under proactive ADR.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

20) A collective science court (CSC) will not succeed unless it has the power to compel the parties to submit to its authority.

Difficulty: 2 Medium

Topic: Proactive ADR Strategies

Learning Objective: 04-09 Discuss the pros and cons of the collective science court proposal.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

21) During the five-day settlement week, a court schedules an arbitration session for each case.

Difficulty: 2 Medium

Topic: Proactive ADR Strategies

Learning Objective: 04-03 Identify the advantages of mediation.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

22) In the Opening Case, Considine v. Brookdale Senior Living, Inc., Brookdale's arbitration clause in the employment agreement was found to be:

A) non-enforceable because it discriminated against Considine's lifestyle.

B) enforceable because Considine signed an employment contract indicating she had read and understood all of the terms in the contract, including the arbitration clause.

C) enforceable because it contained a non-discrimination clause which protected Considine's lifestyle.

D) non-enforceable because it did not contain a non-discrimination clause which protected Considine's lifestyle.

Difficulty: 2 Medium

Topic: A Briefing on Alternative Dispute Resolution (ADR)

Learning Objective: 04-01 Examine the shortcomings of litigation.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

23) ADR is least likely to be useful in cases involving:

A) constitutional law.

B) civil rights.

C) contracts.

D) criminal law.

Difficulty: 2 Medium

Topic: A Briefing on Alternative Dispute Resolution (ADR)

Learning Objective: 04-02 List the advantages and the disadvantages of ADR.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

24) Because many ADR techniques completely sidestep the courts:

A) ADR cannot control the spending on litigation.

B) the parties are kept from carefully considering their agreements.

C) many attorneys do not adequately develop analytical skills.

D) many critical social issues may never reach the judicial system.

Difficulty: 2 Medium

Topic: A Briefing on Alternative Dispute Resolution (ADR)

Learning Objective: 04-02 List the advantages and the disadvantages of ADR.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

25) Which of the following statements about an arbitrator is true?

A) The arbitrator usually encourages the disputing parties to compromise on their demands, but cannot force the parties to do so.

B) The arbitrator has the unilateral power to issue a binding decision on the disputing parties, regardless of whether the parties agree with the decision.

C) Arbitration has no discovery so a case that may have been settled during a conventional lawsuit might drag on.

D) The arbitrator role is only useful before a lawsuit is filed by the parties.

Difficulty: 2 Medium

Topic: Responsive ADR Strategies

Learning Objective: 04-04 Explain the nature of an arbitration hearing.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

26) Which of the following is generally true of arbitration?

A) The arbitrator can make suggestions, but not issue binding decisions.

B) The arbitrator is a non-lawyer from the relevant industry.

C) The arbitrator must be chosen from among the disputing parties.

D) The arbitrator's decision can be appealed in court.

Difficulty: 2 Medium

Topic: Responsive ADR Strategies

Learning Objective: 04-04 Explain the nature of an arbitration hearing.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

27) Which of the following is true of arbitration?

A) The procedures involved in arbitration are more rigid than those followed in lawsuits.

B) An arbitrator's decision is binding and cannot be appealed in court.

C) An arbitration hearing can be planned and executed by the parties themselves.

D) An arbitrator's decision cannot come under the review of the courts.

Difficulty: 2 Medium

Topic: Responsive ADR Strategies

Learning Objective: 04-04 Explain the nature of an arbitration hearing.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

28) ________, a form of ADR, combines the best aspects of ________ and ________.

A) Med-ENE; reg-neg; ENE

B) Neg-arb; negotiation; arbitration

C) Med-arb; mediation; arbitration

D) Med-arb; ENE; a private civil trial

Difficulty: 2 Medium

Topic: Responsive ADR Strategies

Learning Objective: 04-05 Outline the med-arb process.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

29) Early neutral evaluation (ENE) is a(n):

A) ADR process that combines mediation with arbitration.

B) shortened version of a trial, conducted in less than a day before an actual jury which renders an advisory verdict in the case.

C) ADR technique by which the parties hire a retired judge to hear their dispute.

D) ADR process in which the parties permit a referee to assess their case on the basis of the facts and legal arguments alone.

Difficulty: 2 Medium

Topic: Responsive ADR Strategies

Learning Objective: 04-06 Relate the role of the early neutral evaluator.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

30) In a(n) ________, the jury provides an advisory verdict based on the facts.

A) summary jury trial

B) med-Arb hearing

C) early neutral evaluation

D) mediation

Difficulty: 2 Medium

Topic: Responsive ADR Strategies

Learning Objective: 04-07 Describe the process of running a summary jury trial.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

31) ________ is an ADR technique by which parties hire a retired judge or a magistrate to hear the dispute, following rules used in an official trial.

A) Partnering

B) A private civil trial

C) Early neutral evaluation

D) Med-arb

Difficulty: 2 Medium

Topic: Responsive ADR Strategies

Learning Objective: 04-08 Clarify the private and governmental options available under proactive ADR, and specify the governmental options available under proactive ADR.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

32) Big Co. and Gantt Co. have entered into a contract for a long-term construction project. The companies opt to use a partnering process to resolve disputes. The partnering process between them will begin:

A) after the contract has been finalized, but before the project has begun.

B) when the first dispute between the two parties arises.

C) only if both mediation and arbitration procedures have failed.

D) once the project has begun and the parties are aware of possible problems.

Difficulty: 3 Hard

Topic: Proactive ADR Strategies

Learning Objective: 04-08 Clarify the private and governmental options available under proactive ADR, and specify the governmental options available under proactive ADR.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

33) An ADR contract clause:

A) must specify the ADR technique that the parties will use in the event of a dispute.

B) can merely state that the parties have the option of using an ADR technique.

C) prohibits the parties from resorting to litigation to settle an issue.

D) requires that the parties follow all ADR procedures with a summary trial.

Difficulty: 2 Medium

Topic: Proactive ADR Strategies

Learning Objective: 04-02 List the advantages and the disadvantages of ADR.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

34) During a settlement week, the court:

A) settles those cases that cannot be resolved through arbitration.

B) requires attorneys to be present for mediation sessions.

C) resolves all submitted cases to be decided by summary jury trial.

D) subjects all submitted cases to private civil trials.

Difficulty: 2 Medium

Topic: Proactive ADR Strategies

Learning Objective: 04-03 Identify the advantages of mediation.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

35) ________ is an ADR process by which an agency invites the people and the organizations that would be affected by a new rule to have input into the writing of that rule.

A) Med-arb

B) Negotiated rulemaking

C) A private civil trial

D) Mediation

Difficulty: 2 Medium

Topic: Proactive ADR Strategies

Learning Objective: 04-08 Clarify the private and governmental options available under proactive ADR, and specify the governmental options available under proactive ADR.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

36) Post-appellate procedures:

A) involve taking a case that has been rejected or dismissed by a domestic court to an international organization.

B) refer to a pledge to use arbitration, should the parties find themselves in disagreement as to the enforcement rights under the original contract.

C) are processes by which agencies invite the organizations who will be affected by a new rule to provide input about the writing of that rule.

D) specify that the parties to the agreement have promised to use an alternative dispute resolution technique when a disagreement arises rather than litigating the issue.

Difficulty: 2 Medium

Topic: Proactive ADR Strategies

Learning Objective: 04-08 Clarify the private and governmental options available under proactive ADR, and specify the governmental options available under proactive ADR.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

37) Which of the following is not a reason for entering into an international arbitration agreement?

A) The parties' choice of legal representation is limited to the forum in which the dispute is to be heard.

B) Local laws of a particular nation may prevent a party from using certain arbitrators.

C) The parties cannot choose the arbitrators who will decide the case.

D) Using an international arbitration agreement does not allow for uniform enforcement of a judgment across nations.

Difficulty: 2 Medium

Topic: Proactive ADR Strategies

Learning Objective: 04-08 Clarify the private and governmental options available under proactive ADR, and specify the governmental options available under proactive ADR.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

38) The judges on the collective science court must be:

A) drawn from a sample of people affected by the technology in question.

B) scientists with expertise in the areas under investigation.

C) from government bodies involved in legislation about the subject.

D) lawyers with a general scientific background.

Difficulty: 2 Medium

Topic: Proactive ADR Strategies

Learning Objective: 04-09 Discuss the pros and cons of the collective science court proposal.

Bloom's: Understand

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

39) Opponents of ________ have challenged it because they believe it is an unconstitutional deprivation of their right to a trial by jury and equal protection under the law.

A) mandatory mediation

B) mandatory arbitration

C) mandatory med-arb

D) ENE

Difficulty: 3 Hard

Topic: Responsive ADR Strategies

Learning Objective: 04-04 Explain the nature of an arbitration hearing.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

40) To be enforceable and upheld by a court, an ADR contract clause should include all the following standard provisions except:

A) the types of disagreements that will be submitted to ADR.

B) the ADR technique or techniques that can be used.

C) the substantive law and the procedural rules that will be followed.

D) whether both parties have sufficient insurance resources to sustain the award.

Difficulty: 3 Hard

Topic: Proactive ADR Strategies

Learning Objective: 04-02 List the advantages and the disadvantages of ADR.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

41) Chuck likes to grow "natural" flowers, such as dandelions, in his yard, while his neighbor Patty sees these as weeds whose seeds constantly blow into her yard. Both Chuck and Patty anticipate living in their homes for many years to come. Discuss a form of dispute resolution that would best fit this situation.

Difficulty: 3 Hard

Topic: Responsive ADR Strategies

Learning Objective: 04-03 Identify the advantages of mediation.

Bloom's: Evaluate

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

42) Tom and Jerry operate an ice cream business as equal partners. Tom wants to reinvest the profits, and Jerry wants to distribute and spend the profits. If they litigate, the court will likely order the business assets sold, which will destroy the income potential for both Tom and Jerry. Discuss how this dispute might be resolved by arbitration.

Difficulty: 3 Hard

Topic: Responsive ADR Strategies

Learning Objective: 04-04 Explain the nature of an arbitration hearing.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

43) Cheatham and Dunlay are involved in a partnership dispute that presents several complex legal issues. They decide to use early neutral evaluation. Discuss how this process might be helpful in this situation.

Difficulty: 3 Hard

Topic: Responsive ADR Strategies

Learning Objective: 04-06 Relate the role of the early neutral evaluator.

Bloom's: Evaluate

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

44) Kim and Dave are filing for a divorce and dispute the value of assets they acquired while married. Each has had appraisers value the assets, but the appraisers have reached differing conclusions. How will a summary jury trial help in this situation?

Difficulty: 3 Hard

Topic: Responsive ADR Strategies

Learning Objective: 04-07 Describe the process of running a summary jury trial.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

45) Kurt Johannessen, a well-known professional athlete, and Tina, his actress wife, have filed for divorce and are involved in a dispute for the custody of their son. Because of their celebrity status, neither wants the media coverage and public detailing of their private lives that come with official court trials. However, mediation and arbitration efforts have failed as neither party is willing to compromise. Discuss how they can resolve their custody dispute and avoid the publicity issues.

Difficulty: 3 Hard

Topic: Responsive ADR Strategies

Learning Objective: 04-08 Clarify the private and governmental options available under proactive ADR, and specify the governmental options available under proactive ADR.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

46) DSK Construction interacts with many contractors and subcontractors, often for long-term projects. Disputes among the various parties often take a long time to be settled as different parties have different demands. Which method of ADR will help DSK and its contractors prevent disputes before they escalate?

Difficulty: 3 Hard

Topic: Proactive ADR Strategies

Learning Objective: 04-08 Clarify the private and governmental options available under proactive ADR, and specify the governmental options available under proactive ADR.

Bloom's: Evaluate

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

47) Patricia Selan, a freelance photographer, entered a work-for-hire agreement with Dynamic Prints Ltd. During the negotiation stage, Selan asked that the contract include an ADR clause, which would make certain that the parties would submit all disputes to ADR. The clause stated that whenever a disagreement arose, the parties would first talk about the problem informally. If, after 14 days, no solution was reached, the claim would go to the American Arbitration Association, which would assist them in choosing an objective mediator who would help them choose an appropriate ADR plan. What benefits does this contract offer Selan?

Difficulty: 3 Hard

Topic: Proactive ADR Strategies

Learning Objective: 04-02 List the advantages and the disadvantages of ADR.

Bloom's: Evaluate

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

48) When Kiros and Alphonse entered into a partnership agreement, they decided to submit all disputes to binding arbitration and included this clause in their partnership agreement. When a dispute arose, an arbitrator was called in and passed judgment against Kiros. Kiros appealed to the courts, and the arbitrator's ruling was overturned. Discuss a possible explanation for this.

Difficulty: 3 Hard

Topic: Proactive ADR Strategies

Learning Objective: 04-04 Explain the nature of an arbitration hearing.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

49) The FFEA, a federal agency, was charged with the task of drafting a series of rules to implement the New England Fusion Reactor Initiative. The FFEA anticipates that the new rules will involve drastic changes for all the concerned parties. Rather than simply writing the rules and placing them before the affected parties, what action might the FFEA take to minimize the other parties' dissatisfaction with the rules? Explain.

Difficulty: 3 Hard

Topic: Proactive ADR Strategies

Learning Objective: 04-08 Clarify the private and governmental options available under proactive ADR, and specify the governmental options available under proactive ADR.

Bloom's: Evaluate

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

50) The Cuyahoga Experimental Research Company and the Chagrin River Genetics Laboratory Association planned to construct a laboratory for research into the Human Genome Project. The laboratory would be located on land that was owned by four shipping companies. The owners of the companies objected to the way in which their land was appropriated for the project by the government and the research companies. The owners also objected to the planned location of the research facility because they were afraid that some sort of genetic accident might harm the crops and farm animals that were shipped through their terminal which was adjacent to the research facility. Which form of ADR would be ideally suited to hear this dispute? Explain.

Difficulty: 3 Hard

Topic: Proactive ADR Strategies

Learning Objective: 04-09 Discuss the pros and cons of the collective science court proposal.

Bloom's: Evaluate

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation