Chapter 5 practice questions

To avoid the various expenses of litigation, disputing parties can agree to have a third party decide the merits of their dispute.

True

A panel of three arbitrators is required to decide on any dispute regardless of any prior agreement by the parties concerning the number of arbitrators to be used.

False

After a hearing is conducted by an arbitrator or arbitrators, the submission to arbitration occurs.

False

An agreement to submit an issue to arbitration is revocable.

False

Litigation is the most frequently used method of resolving business disputes.

False

Most state statutes authorizing voluntary arbitration accept an agreement to arbitrate even if it is oral in form.

False

Positional bargaining is an approach based on principled, interest-based negotiations.

False

When negotiating, the chances of a negotiated settlement through positional bargaining are high because positional bargaining focuses on the underlying conflicts.

False

By definition, conflicts are always negative and can never be productive.

False Conflicts can certainly be healthy sometimes

Arbitration may function as a precursor to litigation.

False Arbitration, a form of alternative dispute resolution, is a way to resolve disputes outside the courts.

A dispute arises when one party makes a claim that another party denies.

True

A party involved in arbitration can withdraw from the arbitration process and resort to litigation if the members of that party think the process is not going well.

True

An arbitrator does not have to satisfy any licensing requirements.

True

Arbitration enables the disputing parties to avoid the formalities of a courtroom.

True

Compromising is the most difficult negotiating style to demonstrate despite being a common response during a negotiation.

True

Concentrating on the seven elements of interest-based negotiation proposed by Roger Fisher, William Ury, and Bruce Patton can help remove some of the barriers created by positional negotiation.

True

Focus groups give attorneys insight into possible jury reaction to evidence and point up weaknesses in a case.

True

Instinctively, most people use positional bargaining as a negotiation method.

True

Juries often decide close questions of liability, as well as size of the verdict, against business organizations.

True

One of the incentives to settle a lawsuit without going to litigation is that a losing party in litigation will usually have to pay court costs.

True

Questions of fact, questions of law, or a mixture of questions of fact and law can be submitted to arbitration in any state.

True