Question 1

Resolving a dispute through alternative dispute resolution sets a precedent for future cases.

Accepted Answer

Alternative dispute resolution (ADR) methods, such as mediation or arbitration, do not set legal precedents as court decisions do; they are typically private and specific to the parties involved.

Question 2

Which of the following is a characteristic of alternative dispute resolution?

Accepted Answer

One of the advantages of alternative dispute resolution is that the person presiding over the process is often someone who is knowledgeable about the subject matter of the dispute, making it more likely that a fair and equitable resolution can be reached. The other options are not characteristic of alternative dispute resolution.

Question 3

Which of the following is the least adversarial of the formal methods of dispute resolution?

Accepted Answer

Mediation is the least adversarial of the formal methods of dispute resolution because it involves a neutral third party (the mediator) who assists the parties in reaching a voluntary settlement through mutual agreement and compromise. Mediation is a non-binding process, which means that the parties are not obligated to accept the mediator's recommendations or settle the dispute. Arbitration, private trial, and summary jury trial are more adversarial methods because they involve a decision-maker who renders a binding decision or judgment on the dispute.

Question 4

Under the National Labor Relations Act, before engaging in an economic strike to achieve better wages, hours, or working conditions under a new collective bargaining agreement, a union must first contact the and attempt to contract demands.

Accepted Answer

Before engaging in an economic strike to achieve better wages, hours, or working conditions under a new collective bargaining agreement, a union must first contact the FMCS (Federal Mediation and Conciliation Service) and attempt to mediate contract demands.

Question 5

Which of the following is true of a mediator?

Accepted Answer

A mediator is a neutral third party who helps two or more parties in dispute reach a mutually acceptable agreement. While a mediator facilitates discussion and negotiation between the parties involved, they do not arrive at a final decision nor impose one on the parties. Mediators can be obtained from various sources, including the local bar association, private mediation firms, or community dispute resolution centers. While a background in law can be helpful for a mediator, it is not a requirement, and individuals from different backgrounds such as mental health, social work, or business can also make effective mediators. The agreement signed during mediation is generally binding and enforceable, regardless of whether the mediator is from a governmental organization.

Question 6

Which of the following statements is true of mediation?

Accepted Answer

Option A is not true because a mediator is usually chosen by the disputing parties, not the court. Option B is not true because the proceedings of mediation are confidential and cannot be used in litigations. Option C is not true because mediation is usually less time-consuming and less expensive than litigation. Option D is true because currently mediation is increasingly used to resolve disputes related to insurance claims and commercial contracts.

Question 7

Which of the following statements is true about negotiation and settlement?

Accepted Answer

Negotiation and settlement is a common practice in legal disputes where parties try to reach an agreement without going to trial. Most lawyers attempt to negotiate a settlement before taking the case to court. Options A, C, and D refer to other ADR methods such as arbitration, mediation, and mandatory representation respectively.

Question 8

In , the neutral third party attempts to help the parties draft agreements.

Accepted Answer

Mediation is a form of alternative dispute resolution where a neutral third party helps the parties communicate and negotiate with each other to reach a mutually acceptable agreement. The mediator does not make a decision for the parties, but rather assists them in finding their own solution to the dispute.

Question 9

Which of the following statements is true of alternative dispute resolution?

Accepted Answer

Alternative dispute resolution methods, such as mediation or arbitration, are generally less time-consuming than litigation. Additionally, the formal-hearing times and places can be set to accommodate the parties, making it more convenient for them. This makes option D the correct statement. Option A is incorrect because alternative dispute resolution is generally confidential, meaning adverse publicity is unlikely. Option B is incorrect because litigation is typically more expensive than alternative dispute resolution methods. Option C is incorrect because confidentiality is a benefit of alternative dispute resolution, not a loss.

Question 10

Which of the following is a reason to use mediation to resolve environmental disputes?

Accepted Answer

Mediation can easily accommodate multiple parties, which is often necessary in environmental disputes where there are numerous stakeholders with differing interests. The fact that the proceedings of mediation are confidential can also be a benefit, as it allows parties to speak freely without fear of their words being used against them in future legal proceedings. However, the fact that the agreement reached in mediation is not legally binding may be seen as a drawback in some cases, as parties may be reluctant to commit to a resolution that is not enforceable in court. The statement that mediation is the most adversarial ADR method is incorrect, as mediation is actually known for its collaborative and cooperative approach.

Question 11

Mediation differs from arbitration in that .

Accepted Answer

Mediation and arbitration are both forms of alternative dispute resolution (ADR). The main difference between the two is that in mediation, the mediator is a neutral third party who assists the parties in reaching a voluntary and mutually acceptable settlement. The mediator does not make a final decision or impose a solution on the parties. In contrast, in arbitration, an arbitrator is appointed to hear and decide the dispute. The arbitrator's decision is binding and enforceable, similar to a court judgment. Therefore, choice A is the correct answer. Choices B, C, and D are not accurate descriptions of the differences between mediation and arbitration.

Question 12

Atlos Inc. is the primary customer of the raw materials provided by Arcturis Inc. Atlos is unhappy about the previous batch of materials supplied, which has led to a dispute between the two corporations. But, in spite of their dispute, the two companies prefer to continue doing business. Hence, they wish to resolve the dispute in an informal manner without a neutral third party. Which of the following dispute resolution methods is likely to work best for them?

Accepted Answer

Negotiation and settlement is the best method for resolving disputes informally without involving a neutral third party, allowing the parties to directly communicate and reach a mutually agreeable solution.

Question 13

Satarn, Inc. often does business with Scorpeo, Inc. Recently, the two corporations had a minor dispute. However, they wish to continue doing business with one another for which their relationship should be preserved. They came to an agreement that whatever transpires during the resolution process should be confidential. Which of the following dispute resolution methods should they choose?

Accepted Answer

Mediation is a confidential process where a neutral third party helps the disputing parties reach a mutually agreeable solution, making it suitable for preserving business relationships.

Question 14

Lawyers generally avoid negotiation and settlement as a method of dispute resolution.

Accepted Answer

Lawyers often use negotiation and settlement as a method of resolving disputes without going to trial, as it can be faster and less expensive for clients.

Question 15

Successful negotiation of a settlement requires each party to give up something in exchange for getting something from the other party.

Accepted Answer

Successful negotiation involves reaching a mutually beneficial agreement. This usually means that each party must make some concessions and compromises in order to achieve their desired outcome.

Question 16

Andrew is a mediator with a dispute resolution firm. He has been selected to mediate a dispute between two corporations. Which of the following statements is true of his powers?

Accepted Answer

As a mediator, Andrew's power is to help the disputants reach a mutually acceptable solution. He cannot make a final decision or deliver a binding judgment. However, if the parties do reach an agreement, Andrew can help them draft an agreement that will be binding. Therefore, option C is correct. Option A is incorrect because a mediator cannot impose a judgment. Option B is incorrect because a mediator's decision is not admissible as evidence in a court. Option D is incorrect because a mediator cannot deliver a binding judgment.

Question 17

Mediation is a process by which the parties to a dispute come together informally, either with or without their lawyers, and attempt to resolve their dispute. No independent or neutral third party is involved.

Accepted Answer

Mediation does involve an independent or neutral third party, known as a mediator, who helps facilitate communication and negotiation between the parties.

Question 18

The process of negotiation and settlement differs from arbitration in that .

Accepted Answer

Negotiation involves direct discussions between parties without a neutral third party, whereas arbitration involves a neutral arbitrator to make a binding decision.

Question 19

In , the neutral third party makes no final decision.

Accepted Answer

In mediation, the neutral third party (mediator) facilitates communication between the parties and helps them come to a mutually acceptable resolution. However, the mediator does not make a final decision, the parties themselves ultimately decide on the outcome. In arbitration, private trials, and summary jury trials, the neutral third party does make a final decision or award.

Question 20

Which of the following alternative dispute resolution methods does not involve a neutral third person?

Accepted Answer

Negotiation and settlement involve only the parties involved in the dispute and do not require the involvement of a neutral third person. B) Early neutral case evaluation and D) mediation both involve the presence of a neutral third person, while C) minitrial involves the participation of representatives from each party as well as a neutral advisor.

Quiz 4: Alternative Tools of Dispute Resolution