Question 1

Victor signs an arbitration agreement providing that he will arbitrate any disputes with his employer, Business Corp. Victor believes that Business Corp. has discriminated against him in violation of the Americans with Disabilities Act. The EEOC also investigated the situation and brought an action against Business Corp. alleging that Business Corp. discriminated against Victor in violation of the Americans with Disabilities Act. What is the effect of the arbitration clause in regards to the action brought by the EEOC?

Accepted Answer

The arbitration clause between Victor and Business Corp. is not binding on the EEOC because the EEOC is a federal agency that enforces civil rights laws against workplace discrimination and is not a party to the private arbitration agreement between an employer and an employee.

Question 2

Which of the following describes the role of arbitration and mediation in e-commerce cases?

Accepted Answer

Arbitration and mediation are both increasingly used as methods to resolve disputes in e-commerce cases, offering alternatives to traditional court litigation. These methods are favored for their efficiency, cost-effectiveness, and confidentiality.

Question 3

In which of the following do parties select a neutral third party and explain their respective positions to this neutral, who then evaluates the strengths and weaknesses of the case?

Accepted Answer

Early neutral case evaluation involves parties selecting a neutral third party to evaluate the strengths and weaknesses of their case, providing them with an objective assessment.

Question 4

In what situations would a court most often strike down an arbitration clause as unconscionable?

Accepted Answer

Courts are most likely to strike down arbitration clauses as unconscionable in consumer and employment contracts, especially when there is a significant imbalance of power between the parties, such as a large corporation versus an individual consumer or employee. This is because these clauses can sometimes unfairly limit the rights of the weaker party to seek redress in court.

Question 5

Med-arb is which type of dispute resolution process?

Accepted Answer

Med-arb is a dispute resolution process where the parties agree to start with mediation and, if unsuccessful, proceed to arbitration. This combines the flexibility and collaborative nature of mediation with the finality of arbitration.

Question 6

________ is a dispute resolution process in which the parties agree to mediation and if the mediation is unsuccessful on one or more points, the parties move on to arbitration.

Accepted Answer

Med-arb combines both mediation and arbitration processes. Initially, a neutral third party attempts to facilitate a settlement between the parties through mediation. If unresolved issues remain, the process transitions to arbitration, where a binding decision is made on those issues.

Question 7

Many federal district courts use ADR to resolve disputes within cases. Which form of ADR is most often used?

Accepted Answer

Mediation is the most often used form of Alternative Dispute Resolution (ADR) in federal district courts because it facilitates negotiation between parties with the help of a neutral third party, aiming to reach a mutually acceptable resolution without the need for a trial.

Question 8

If a party does not abide by an agreement reached in mediation, which of the following is true of the remedy?

Accepted Answer

If a party does not abide by an agreement reached in mediation and the agreement is binding, the remedy often involves suing for breach of contract. This is because the agreement, once signed by both parties, can be enforceable in a court of law.

Question 9

Which of the following is helping more and more litigants in resolving e-commerce disputes?

Accepted Answer

The National Arbitration Forum is known for providing arbitration services to resolve e-commerce disputes efficiently.

Question 10

The 1998 ________ states that all federal district court litigants must consider the use of ADR at some stage of the litigation.

Accepted Answer

The 1998 Alternative Dispute Resolution Act requires all federal district court litigants to consider the use of Alternative Dispute Resolution (ADR) at some stage of the litigation process.

Question 11

In the case of Robert Gilmer v. Interstate/Johnson Lane Corporation involving whether a claim under the federal Age Discrimination in Employment Act was subject to arbitration, what did the U.S. Supreme Court rule?

Accepted Answer

The U.S. Supreme Court ruled that the agreement by which the plaintiff agreed to arbitrate all employment disputes as a condition of his employment was valid, affirming the enforceability of arbitration agreements in the context of employment disputes, including those involving federal statutory rights under the Age Discrimination in Employment Act.

Question 12

Lena receives notice of a lawsuit that indicates the suit is in the federal district court. She has heard about the Alternative Dispute Resolution Act and has been told she is required by law to use a form of ADR before she goes to court. Is this true?

Accepted Answer

The Alternative Dispute Resolution Act encourages the use of ADR but does not mandate a specific form of it in all cases. The implementation and requirements can vary by court, meaning that while Lena must consider ADR, she is not forced into a specific process like mediation or arbitration by law in every situation.

Question 13

A provision in a contract that mandates that all disputes arising under the contract must be settled by arbitration is called a[n] ________.

Accepted Answer

A binding arbitration clause is a provision in a contract that requires the parties to resolve disputes through arbitration rather than through litigation in court. This type of clause mandates that arbitration is the sole method for resolving disputes arising from the contract.

Question 14

What is a criticism of arbitration, according to the text?

Accepted Answer

Arbitration can allow companies and employers to more easily hide disputes because the process is generally private, and the outcomes are not part of the public record, unlike court cases.

Question 15

Mark and Elizabeth have a dispute over who breached a contract between their respective companies. The two hire a referee to offer a legally binding judgment in a dispute. What form of ADR is this?

Accepted Answer

The answer of Mark and Elizabeth have a dispute over...

Question 16

Many private firms have started to offer private jury trials and hire jurors who are often better educated than the typical juror. Many of these jurors have had several experiences serving on multiple private juries. Which of these is the biggest criticism of a private trial?

Accepted Answer

The biggest criticism of a private trial is the concern that it could lead to a two-tiered system of justice, where only those who can afford it have access to potentially more educated jurors and possibly a different quality of justice compared to the public court system.

Question 17

Several merchants signed a binding arbitration agreement with American Express Co. The arbitration agreement included a clause prohibiting class action arbitration. Later, after a serious dispute arose involving a federal statute, the merchants wanted to pursue class action arbitration against American Express arguing that it would be too expensive to pursue the claims individually. Assuming the Federal Arbitration Act applies, how should a court rule on the issue?

Accepted Answer

The Federal Arbitration Act supports the enforcement of arbitration agreements as they are written, including provisions that prohibit class action arbitration. The Supreme Court has upheld such agreements, emphasizing the importance of enforcing arbitration agreements according to their terms.

Question 18

A ________ trial is an abbreviated trial that leads to a non-binding jury verdict.

Accepted Answer

A summary jury trial is a shortened, structured trial that leads to a non-binding jury verdict, intended to facilitate the settlement of cases by giving parties a preview of what might happen in a full trial.

Question 19

A ________ allows the parties to submit a specific dispute involving a contractual provision to arbitration if a contract does not provide for arbitration.

Accepted Answer

A submission agreement is specifically designed to allow parties to agree to submit a particular dispute to arbitration, even if their original contract does not include an arbitration clause. This enables parties to opt for arbitration for resolving specific disputes that arise, despite the absence of a pre-existing arbitration provision in their contract.

Question 20

Japan uses what types of ADR techniques?

Accepted Answer

Japan uses a variety of Alternative Dispute Resolution (ADR) techniques including compromise, conciliation, and arbitration. These methods are recognized and utilized in both commercial and civil disputes to facilitate resolution outside of traditional court proceedings.

Quiz 4: Alternative Dispute Resolution