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BUSINESS LAW CHAPTER 4

by | Nov 29, 2023 | Posted Questions

Question 1


Arbitration is a type of alternative dispute resolution?

A
Where a neutral third party makes a decision that resolves the dispute.


B Is frequently used after a
trial cannot resolve the dispute.

C That
always follows a trial.

D Where the parties select a neutral third
party to help facilitate communication.

E
Only used for labor disputes.

Question 2


A business may use ADR because they wish to avoid?


A
The quick resolution offered by a trial.

B
Setting precedent through a court
decision.

C
The secrecy of the trial process.

D
The business relationships created by a trial.

E The
fun and games of a trial.

Question 3


Courts are generally?


A
Against using ADR.

B
Much cheaper than using ADR to resolve disputes.

C
Much faster than using ADR to resolve disputes.

D
Quite supportive of ADR methods.

E
Private.

Question 4


If one of the parties to a mediation does not follow the agreement?


A
They may be placed in jail.

B
The courts will fine them.

C
That party can be sued for breach of contract.

D
Then the parties are likely to try a different mediator.

E
All of the above.

Question 5


Because parties in mediation are encouraged to communicate openly?


A
They usually do not experience bitterness toward the opposing party.

B
They usually develop bitterness toward the opposing party.

C
They rarely can work out their differences.

D
Mediation is always successful

E
Mediation is never successful.

Question 6


Unlike litigation or arbitration, where a neutral third party makes a
decision that resolves the dispute?


A
Parties to mediation don’t get to select the mediator.

B
Parties to mediation have no autonomy whatsoever.

C
Parties to mediation have a high level of autonomy.

D
Mediation rarely resolves the dispute.

E The
plaintiff makes all decisions in the mediation process.

Question 7


Mediation is particularly useful for environmental disputes because?


A
It uses media rather than environmentally harmful substances.

B
It follows the laws of nature.

C
It allows for creative solutions and compromises.

D
It creates a nicer environment for all parties involved.

E
All of the above.

Question 8


A primary purpose of mediation is to?


A
Keep disputes out of the court system.

B
Show that people really can work together.

C
Persuade the judge to be fair.

D
Prevent people from receiving too much information.

E
Perpetuate the need for additional ADR methods.

Question 9


A contractual agreement to arbitrate disputes may stipulate?


A
The time for the arbitration to occur.

B
The date for the arbitration to occur.

C
The place for the arbitration to occur.

D
All of the above.

E
How the arbitrator will be selected and how the hearing will be
administered

Question 10


An arbitration hearing is different from a trial in that?


A
The arbitrator often takes a much more active role in an arbitration
hearing.

B
No official written record of the hearing is kept

C
The rules of evidence applicable in a trial are typically relaxed in
arbitration.

D
The arbitrator is not as constrained by precedent as are judges.

E All
of the above.

Question 11


Because the arbitrator was hired to resolve a dispute between two
parties?


A There is a greater risk of improprieties
occurring.

B The arbitrator is more likely to make a
compromise ruling instead of a win-lose ruling.

C One of the parties will always be
dissatisfied with the outcome.

D There can only be one winner to the
arbitration.

E
It is always more expensive than
mediation.

Question 12


Grounds on which an arbitrator’s award may be set aside are?

A
The award was the result of corruption, fraud, or other undue means.

B The arbitrator displayed bias or corruption.

C
The arbitrator misbehaved to
prejudice the rights of one of the parties.

D
The arbitrator exceeded her authority.

E
All of the above.

Question 13


Parties have more control over the process of dispute resolution than
litigation because?


A
Litigation always results in a winner takes all outcome.

B
Arbitrators are generally
weaker than judges.

C
They choose the arbitrator and
determine how formal the process will be.

D Arbitrators are paid more than judges.

E Arbitrators are easily manipulated.

Question 14


The confidentiality associated with an arbitration proceeding?


A
Can only benefit society.

B
May be harmful to society in some
cases.

C
Can only harm society.

D Is always absolute.

E Can be breached without consequence.

Question 15


A submission agreement typically states?


A
The nature of the dispute.

B
How the arbitrator will be
selected.

c
The place of the arbitration.

D Any limitations on the arbitrator’s authority
to remedy the dispute.

E All of the above.

Question 16


Binding arbitration clauses must be drafted in such a way to ensure that
the courts?


A Will apply them to other contracts as well.

B Will completely disregard the clause.

C Notice them.

D Do not see them as unconscionable.

E Charge the appropriate fees.

Question 17


When creating a binding arbitration clause, make sure that it will not
cost?


A The employee more to arbitrate than it
would have cost to litigate.

B
The employee more than the employer.

C The employer more than the employee.

D
Less than the company’s annual
revenue.

E
Less than the cost to litigate.

Question 18


Whether the challenge is brought in federal or state court, a challenge
to the validity of the contract as a whole, and not specifically the
arbitration clause?


A Must be settled by the court.

B Must go to the arbitrator.

C Cannot be settled by the arbitrator.

D Must provide 180 days notice to the
defendant.

E Must be accompanied by a lawsuit

Question 19


While the EEOC strongly supported agreements to arbitrate once a dispute
has arisen, they did not support the inclusion of arbitration agreements?


A
As a matter of established law.

B
As necessary.

C As an unconditional element of employment.

D As ever being permissible.

E In sale of business contracts.

Question 20


In Circuit City v. Saint Clair Adams, the U.S. Supreme Court clearly set
forth the rule that the Federal Arbitration Act?


A Does apply to employment contracts.

B
Only applies to employment
contracts.

C
Never applies to employment contracts.

D Had no impact on NASA’s planned mission to
mars.

E Is unconstitutional.

Question 21


No area uses arbitration in as great a percentage of cases as does?


A
The area of intellectual
property.

B The area of torts.

C
The area of criminal law.

D The employment area.

E
The state of South Dakota.

Question 22


Which ADR process involves an abbreviated trial that leads to a
nonbinding jury verdict?


A Med-arb.

B Summary jury trial.

C Minitrial.

D Early neutral case evaluation.

E Private trials.

Question 23


Which ADR process is generally used by disputing businesses?


A Med-arb.

B Summary jury trial.

C Minitrial.

D Early neutral case evaluation.

E Private trials.

Question 24


Many scholars criticize the typical jury because they believe that such
a jury is?


A Unable to accurately fulfill its role as fact
finder.

B Racially biased.

C Sexually biased.

D Too old.

E Too young.

Question 25


The federal district courts vary greatly in terms of which ADR methods?


A
Are approved.

B
Are excluded.

C Are precluded.

D Are encouraged.

E
Are preferred.

Question 26


The New York Convention ensures that an arbitration award will be
enforced?


A Only if litigation is not available.

B By countries that are parties to the treaty.

C Only if the countries involved are hostile
toward each other.

D For all criminal lawsuits.

E
In the event of a nuclear
disaster.

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