Business Law Midterm Chapter 3

arbitration

(law) the hearing and determination of a dispute by an impartial referee agreed to by both parties (often used to settle disputes between labor and management)

adhesion contract

A "standard-form" contract, such as that between a large retailer and a consumer, in which the stronger party dictates the terms.

arbitration clause

A clause in a contract that provides that, in the event of a dispute, the parties will submit the dispute to arbitration rather than litigate the dispute in court.

non-binding arbitration

A decision is made by an arbitrator, but the parties involved do not have to follow the final decision.

early neutral case evaluation

A form of alternative dispute resolution in which a neutral third party evaluates the strengths and weakness of the disputing parties' positions; the evaluator's opinion forms the basis for negotiating a settlement.

mediation

A method of settling disputes outside of court by using the services of a neutral third party, called a mediator. The mediator acts as a communicating agent between the parties and suggests ways in which the parties can resolve their dispute.

mini-trial

A private proceeding in which each party to a dispute argues its position before the other side and vice versa. A neutral third party may be present and act as an adviser if the parties fail to reach an agreement.

negotiation

A process in which parties attempt to settle their dispute informally, with or without attorneys to represent them.

the federal arbitration act

Provides the arbitration agreements generally shall be valid, irrevocable, and enforceable

submission

begins arbitration, the act of referring a dispute to an arbitrator

mediation-arbitration

both parties agree to start out in mediation and if unsuccessful to move on to arbitration

facilitation

in which a third party assists disputing parties in reconciling their differences

summary jury trial

mock trial followed by negotiations

binding mediation

parties agree that if they cant resolve the dispute, the mediator can make a legally binding decision on the issue

class action waiver

requires all disputes to be arbitrated on an individual basis, which provides an advantage to the credit card company

award

the arbitrator's decision

online dispute resolution

the resolution of disputes with the assistance of organizations that offer dispute-resolution services via the internet.

unconscionable

unscrupulous; shockingly unfair or unjust