Chapter 5 - Business Law

Which of the following statements is true of voluntary arbitration?

The procedure is not tied to a court and is not bound by rules of evidence.

Which of the following statements is true of caucuses in dispute resolution?

They are sometimes used by mediators to make the mediation processes more productive.

Which of the following statements is true of focus groups?

They are used by attorneys, and they point out weaknesses in a particular case.

Which of the following statements is true of principled, interest-based negotiations?

They involve seven elements that vary in importance depending on the factual situation in dispute and on the parties' individual perspectives.

Which of the following statements is true of the Federal Arbitration Act?

It covers any arbitration clause in a contract that involves interstate commerce.

Which of the following is not true of an award?

It is subject to judicial review on the merits of a decision.

Which of the following describes an element of a conflict?

It leads to disputes when coupled with claims that are rejected.

The effect of the Federal Arbitration Act on state laws is that state laws __________.

cannot prevent arbitration of disputes if the disputing parties are engaged in interstate commerce

According to Roger Fisher, William Ury, and Bruce Patton, any successful negotiation must conclude with the disputing parties making realistic _____.

commitments

_______ is the term used when a dispute has been referred to arbitration.

Submission

In the context of judicial review of voluntary arbitration, error of law renders an arbitration award void only when __________

it violates a positive mandate of the law

An arbitrator's award must __________.

give a disclosure of findings and the reasons if an arbitration agreement so requires

What percentage of tort cases filed in the U.S. District Court are reported to be settled prior to trial?

98%

Which of the following statements most accurately describes a post-dispute arbitration agreement?

A clause regarding arbitration that is signed when parties are already in dispute and decide that arbitration is better than litigation.

_____ occurs when a trial judge requires the disputing parties to submit to the mediation process before a complaint can be litigated formally.

Court-annexed mediation

Which of the following statements is true of the use of alternative dispute resolution (ADR) techniques?

Disputing parties can agree to use an ADR technique after a dispute arises.

Which of the following is the most accurate listing of dispute resolution options from highest cost to lowest cost?

Trial, Arbitration, Negotiated Settlement

The decision handed down by an arbitrator in a hearing is called a(n) _____.

award

Unlike mandatory arbitration, voluntary arbitration is __________.

based on parties' agreement after dispute arises or on contract clause before dispute arises

Unlike an arbitrator, a mediator __________.

cannot impose a binding solution on the disputing parties

When a losing party in an arbitration proceeding makes allegations of bias against an arbitrator, the allegations __________.

normally do not affect the results of arbitration

A negotiation between a seller and a buyer begins with each party stating their respective expectations in a competitive style. The seller starts with as high an asking price as is considered reasonable. Likewise, the buyer begins with the lowest reasonable price. In the context of negotiation methods, this scenario is an example of _____.

positional bargaining

Mandatory arbitration can be constitutional if __________.

the disputing parties include a contract clause for arbitration in the agreement before dispute arises

In the absence of a statute, the rights and duties of the disputing parties to a submission for arbitration are described and limited by _____.

the parties' agreement

When arbitration is pursuant to state statute, _____.

the statute determines what grounds may be used to challenge an award in court