Question 1

Private arbitrators are not permitted to decide on questions of law.

Accepted Answer

The issues submitted to arbitration, as framed in the submission, may be questions of fact, questions of law, or mixed questions of fact and law.

Question 2

If a party is unhappy with the way a private arbitration is going, it may unilaterally close the proceedings and move the dispute to public litigation.

Accepted Answer

The parties authorize an arbitrator to make a decision that binds these parties and resolves their dispute. A party that thinks the process is not going well cannot withdraw from the arbitration and resort to litigation.

Question 3

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

Accepted Answer

In positional bargaining, the parties begin in a competitive style by stating their respective expectations. For example, in a sales transaction, the seller starts with as high an asking price as is considered reasonable. Likewise, the buyer begins with the lowest reasonable price.

Question 4

Focus groups can deliver binding decisions in civil cases.

Accepted Answer

Attorneys frequently use focus groups in significant cases. The attorneys assemble a group of citizens and present their evidence. This group then deliberates and makes findings. This dress rehearsal gives attorneys insight into possible jury reaction to the evidence and points up weaknesses in the case.

Question 5

The arbitrator should be disinterested in any financial impact of the decision.

Accepted Answer

The primary reason for the use of arbitration is the laudable goal of providing a relatively quick and inexpensive resolution of disputes. The arbitrator should be disinterested in any financial impact of the decision.

Question 6

The arbitrator is empowered by the parties to reach a binding decision in a voluntary arbitration.

Accepted Answer

Submission to arbitration often occurs when the disputing parties agree to use this form of ADR. Such an agreement by the parties is a submission to voluntary arbitration. Generally, an agreement to submit an issue to arbitration is irrevocable, and a party that thinks the process is not going well cannot withdraw from the arbitration and resort to litigation.

Question 7

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

Accepted Answer

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

Question 8

Each state has its own licensing regulations for arbitrators.

Accepted Answer

Arbitration provides for decision making by experts with experience in the particular industry and with knowledge of the customs and practices of the particular work site.

Question 9

Once a lawsuit has been filed, ADR may not be used until the suit has gone to judgment or has been dismissed.

Accepted Answer

Effective use of ADR systems can save disputing parties many of the costs associated with litigation, even after it has begun.

Question 10

Positional negotiation creates barriers to resolution that may be removed by using principles instead of positions.

Accepted Answer

Most people instinctively use a negotiation method called positional bargaining. A better approach to negotiating among disputing parties has been described as principled, interest-based negotiations.

Question 11

Litigation is the quickest method of dispute resolution.

Accepted Answer

The litigation process within the court system imposes tremendous costs in terms of time, money, emotional stress, and harmony in relationships. This fact is a major reason why you probably have very little personal experience with litigation. It also is the reason most businesses try to avoid litigation and use it as a means of last resort to resolve disputes.

Question 12

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

Accepted Answer

Juries are frequently sympathetic to individuals who have suits against large corporations or defendants who are covered by insurance. Juries often decide close questions of liability, as well as size of the verdict, against business organizations because of their presumed ability to pay. As a result, businesses settle many disputes even though they might possibly prevail in litigation.

Question 13

Normally, the decision to submit a dispute to arbitration is irrevocable.

Accepted Answer

Generally, an agreement to submit an issue to arbitration is irrevocable, and a party that thinks the process is not going well cannot withdraw from the arbitration and resort to litigation.

Question 14

The sole source of qualified expert arbitrators currently is the American Arbitration Association.

Accepted Answer

Arbitrators generally are chosen by the disputing parties. A provision in the agreement to arbitrate or in the statute that requires the arbitration describes how the arbitrator is selected.

Question 15

An arbitrator must be a lawyer or a judge in good standing in the community where the arbitration is to take place.

Accepted Answer

There are no licensing requirements an arbitrator must satisfy. Appraisers can be used to decide disputes about the value of real estate, medical doctors can be used to decide health care disputes, and academicians can be used to decide issues within their area of expertise.

Question 16

To avoid costly public litigation, parties can agree to have a private third party decide the merits of their dispute.

Accepted Answer

To avoid the various expenses of litigation, disputing parties sometimes agree to have a third party decide the merits of the dispute. This formal ADR system is called arbitration.

Question 17

Negotiation is the process used to persuade or coerce someone to do what you want them to do.

Accepted Answer

Negotiation is the process used to persuade or coerce someone to do what you want them to do. All of us instinctively engage in some form of negotiation. Even as evidence of a conflict is exhibited (through comments or sighs or groans), the parties are negotiating.

Question 18

A negotiated settlement is generally more expensive and time-consuming than litigation.

Accepted Answer

The winning party in a lawsuit is a loser to the extent of the attorney's fees- which are often substantial. The fact that the loser usually also has to pay court costs is an added incentive to settlement without litigation.

Question 19

In most state statutes authorizing voluntary arbitration, the agreement to submit to arbitration may be written or oral.

Accepted Answer

The act of referring a matter to arbitration is called submission. Submission to arbitration often occurs when the disputing parties agree to use this form of ADR. Most state statutes authorizing voluntary arbitration require the agreement to arbitrate to be in writing.

Question 20

The arbitrator chooses the issues of the hearing to be resolved.

Accepted Answer

The issues submitted to arbitration, as framed in the submission, may be questions of fact, questions of law, or mixed questions of fact and law. Parties that have contracted to arbitrate are not required to arbitrate any matters other than those they contractually agree to arbitrate.

Quiz 5: Alternative Dispute Resolution

Private arbitrators are not permitted to decide on questions of law.

If a party is unhappy with the way a private arbitration is going, it may unilaterally close the proceedings and move the dispute to public litigation.

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

Focus groups can deliver binding decisions in civil cases.

The arbitrator should be disinterested in any financial impact of the decision.

The arbitrator is empowered by the parties to reach a binding decision in a voluntary arbitration.

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

Each state has its own licensing regulations for arbitrators.

Once a lawsuit has been filed, ADR may not be used until the suit has gone to judgment or has been dismissed.

Positional negotiation creates barriers to resolution that may be removed by using principles instead of positions.

Litigation is the quickest method of dispute resolution.

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

Normally, the decision to submit a dispute to arbitration is irrevocable.

The sole source of qualified expert arbitrators currently is the American Arbitration Association.

An arbitrator must be a lawyer or a judge in good standing in the community where the arbitration is to take place.

To avoid costly public litigation, parties can agree to have a private third party decide the merits of their dispute.

Negotiation is the process used to persuade or coerce someone to do what you want them to do.

A negotiated settlement is generally more expensive and time-consuming than litigation.

In most state statutes authorizing voluntary arbitration, the agreement to submit to arbitration may be written or oral.

The arbitrator chooses the issues of the hearing to be resolved.