Question 1

An arbitrator's erroneous view of the law,no matter how egregious,is always binding because the disputing parties have agreed to accept their arbitrator's view of the law.

Accepted Answer

The fact that an arbitrator made erroneous rulings during a hearing, or reached erroneous findings of fact from evidence, is no ground for setting aside an award because the parties have agreed that the arbitrator should be the judge of the facts. An erroneous view of the law, no matter how egregious, is binding because the parties have agreed to accept the arbitrator's view of the law.

Question 2

A court assumes arbitration was intended unless it can say with positive assurance that the arbitration clause was not intended to include the particular dispute.

Accepted Answer

A court assumes arbitration was intended unless it can say with positive assurance that the arbitration clause was not intended to include the particular dispute. The federal policy clearly favors arbitration of commercial disputes.

Question 3

Rules related to court-annexed mediation are federally mandated.

Accepted Answer

Rules related to court-annexed mediation are local in nature; thus, there are wide variations as to the type of cases that courts require to be mediated.

Question 4

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 _____.
A) positional bargaining
B) principled negotiation
C) distributive negotiation
D) fact bargaining
E) surface bargaining

Accepted Answer

In the context of negotiation methods, this scenario is an example of positional bargaining. In positional bargaining, the disputing parties typically begin in a competitive style by stating their respective expectations.

Question 5

Statutorily mandated arbitration requires a higher level of judicial review of an award than voluntary arbitration.

Accepted Answer

Although a party may voluntarily consent to almost any restriction upon or deprivation of a right, a similar restriction or deprivation, when compelled by government, must be in accord with procedural and substantive due process of law. Therefore, statutorily mandated arbitration requires a higher level of judicial review of the award.

Question 6

A mediator cannot impose a binding solution on the disputing parties.

Accepted Answer

A mediator cannot impose a binding solution on the parties. However, as an unbiased and disinterested third party, a mediator is often able to help the disputing parties bring about an understanding of a dispute and, thus, avoid litigation of it.

Question 7

Rita files a case against her husband involving the custody of their child.This is an example of a case that is subject to court-annexed mediation.

Accepted Answer

The arbitration process is less time consuming and less costly than litigation only if the disputing parties are limited in seeking judicial review of the arbitrators' awards. From this perspective, voluntary arbitration is a more effective alternative to litigation than mandatory arbitration.

Question 8

Individual states are not limited by the constitution when they make laws that deny arbitration of certain disputes.

Accepted Answer

The Commerce Clause and the Supremacy Clause of the U.S. Constitution are often used to set aside state laws that deny arbitration of certain disputes. State laws cannot prevent arbitration of disputes if the disputing parties are engaged in or affect interstate commerce.

Question 9

If an arbitrator undertakes an independent investigation into a material matter after the close of hearings without notice to the disputing parties,such an action constitutes misconduct on the part of the arbitrator.

Accepted Answer

In mandatory arbitration, an award is an intermediate step in resolving a dispute if a trial itself is desired. The right to reject the award and to proceed to trial is the sole remedy of a party dissatisfied with the award.
Multiple Choice Questions

Question 10

The court mandates an enforcement mechanism that ensures the disputing parties will mediate in good faith.

Accepted Answer

The basic advantage of mediation over litigation and arbitration is that the disputing parties retain full control over the resolution (or lack thereof) of their controversy. Through retaining this control, the parties can decide how much time and effort to put into the mediation process.

Question 11

Courts throughout the United States have uniformly upheld mandatory arbitration statutory schemes as against the constitutional challenges where a dissatisfied party can reject an arbitrator's award and seek a de novo judicial review of that award.

Accepted Answer

Courts throughout the United States have uniformly upheld mandatory arbitration statutory schemes as against the constitutional challenges where a dissatisfied party can reject the arbitrator's award and seek a de novo judicial review of that award. De novo review means that the court tries the issues anew as if no arbitration occurred.

Question 12

Generally,an arbitrator's award does not need to set forth conclusions of law or the reasons for an award.

Accepted Answer

Generally, an arbitrator's award does not need to set forth findings of fact, conclusions of law, or the reasons for an award. However, a disclosure of findings and the reasons must be given if the applicable statute, arbitration agreement, or submission so requires. When the arbitrator does provide the basis for decision in the form of an opinion or letter, that document becomes a part of the award.

Question 13

Which of the following statements is true of conflicts?
A)They are always negative in 
B)They are present only in unproductive relationships.
C)They lead to disputes when coupled with claims that are rejected.
D)They cease to exist when there are two or more points of view.
E)They promote a secure environment if left undiscussed.

Accepted Answer

Negotiation is the process used to persuade or coerce someone to do what one wants them to do. People negotiate all the time with themselves, their family members, their co-workers, and even with strangers.

Question 14

The federal system and all state systems require arbitration hearings to be conducted according to the established rules of evidence.

Accepted Answer

In most states, the established rules of evidence must be followed by the arbitrators. Several jurisdictions, however, do not require hearings to be conducted according to the established rules of evidence.

Question 15

Each state has its own licensing regulations for arbitrators.

Accepted Answer

Any person the disputing parties agree upon can be an arbitrator. There are no licensing requirements an arbitrator must satisfy.

Question 16

Judicial review of voluntary/contract-based arbitration requires a de novo review of the interpretation and application of the law by the arbitrators.

Accepted Answer

Judicial review of mandatory arbitration requires a de novo review of the interpretation and application of the law by the arbitrators. The scope of review by courts of an arbitrator's award in a voluntary/contract-based arbitration is extremely limited.

Question 17

The important role and positive perception of arbitration among businesses today probably would not exist without the Federal Arbitration Act.

Accepted Answer

The important role and positive perception of arbitration among businesses today probably would not exist without the Federal Arbitration Act (FAA). Prior to the enactment of the FAA, our common law system preferred litigation over arbitration as a means of resolving disputes.

Question 18

The failure of a party to be present at an arbitration constitutes a waiver of the right to reject the arbitration award and seek de novo judicial review.

Accepted Answer

The failure of a party to be present, either in person or by counsel, at an arbitration constitutes a waiver of the right to reject the award and seek de novo judicial review. In essence, a party's lack of participation operates as a consent to the entry by the court of a judgment on the award.

Question 19

Which of the following statements is true of principled,interest-based negotiations?
A) They typically begin in a competitive style with the disputing parties stating their respective expectations.
B) They involve seven elements that vary in importance depending on the factual situation in dispute and on the parties' individual perspectives.
C) They are concerned only with preparing for litigation to settle disputes.
D) They require the presence of a judge or magistrate to come up with a reasonable outcome that is better than the disputing parties' alternatives.
E) They force parties to choose alternatives, which are outcomes that are agreeable to everyone involved.

Accepted Answer

Principled, interest-based negotiations involve seven elements that vary in importance depending on the factual situation in dispute and on the parties' individual perspectives. Concentrating on these elements can help to remove some of the barriers created by positional negotiation.

Question 20

The judicial review of an arbitrator's award in a voluntary arbitration procedure is quite restricted and is more limited than the appellate review of a trial court's decision.

Accepted Answer

The judicial review of an arbitrator's award is quite restricted and is more limited than the appellate review of a trial court's decision. The arbitrator's findings on questions of both fact and law are conclusive.

Quiz 5: Alternative Dispute Resolution