4

Transcontinental Tours, a U.S. firm, and Victoria Hotels, Ltd., a Canadian firm, enter into a contract that does not have a forum-selection or choice-of-law clause. Litigation between Transcontinental and Victoria over a dispute involving this contract may occur in

Canada, the United States, or both.

A choice-of-law clause designates the jurisdiction for the litigation of disputes arising under a contract. True or False

False

A compulsory arbitration in a consumer contract may be unconscionable. True or False

True

A court's review of an arbitrator's award may be restricted. True or False

True

The goal of mediation is to work out a resolution that benefits both sides to a dispute. True or False

True

Lucille files a suit against Murray. They meet, and each party's attorney 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 encourage them to settle their dispute. This is

a summary jury trial.

Orson files a suit against Portia. 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 imposes a resolution on the parties. This is

arbitration.

The least expensive method of resolving a dispute between Ronald and Sharon may be

negotiation because no third parties are needed.

Transnational Corporation and United Shipping, Inc., agree to a contract that includes an arbitration clause. If a dispute arises, a court having jurisdiction may

order a party to submit to arbitration.

First Community Credit Union and General Hydraulics. Inc., have their dispute resolved in arbitration. Before determining the award, the arbitrator meets with First Community's representative to discuss the dispute without General Hydraulics' representative being present. If this meeting substantially prejudices General Hydraulics' rights, a court will most likely

set aside any award.