Question 1

Owen,in Pennsylvania,and Quonset Structures,Inc. ,in Maryland agree to have their dispute resolved in arbitration according to the law of Virginia.This is a ground for a court to
A)do nothing.
B)review the merits of the dispute.
C)review the sufficiency of the evidence.
D)set aside the award.

Accepted Answer

The agreement to arbitrate according to the law of Virginia is a valid choice of law provision, and courts typically do not interfere with arbitration awards unless there is evidence of fraud, bias, or a significant procedural issue.

Question 2

Seaside Resort,Inc. ,adopts an alternative dispute resolution (ADR)pro?gram.Tess,a current employee,signs an agreement under which arbi?tration is subject to "Seaside's rules,with the employee to bear all costs of the proceeding." When a dispute arises,Tess refuses to arbitrate.Seaside files a suit to compel arbitration.The court will most likely
A)order arbitration according to Seaside's rules.
B)order arbitration but suspend Seaside's rules.
C)refuse to order arbitration if a resolution of the dispute is clear.
D)refuse to order arbitration if Tess lacks the ability to pay.

Accepted Answer

If Tess lacks the ability to pay for the arbitration costs, the court may refuse to order arbitration as it could be deemed unconscionable or unfair.

Question 3

The Idaho Supreme Court rules against Jiffy Mart in a case against Kwik Stop Stores,Inc.Jiffy Mart files an appeal with the United States Supreme Court.The Court does not hear the case.This
A)is a decision on the merits with value as a precedent.
B)indicates agreement with the Idaho court's decision.
C)means nothing.
D)means that the Idaho court's decision is the law in Idaho.

Accepted Answer

The United States Supreme Court's decision not to hear the case means that the Idaho court's decision stands and is the law in Idaho.

Question 4

Massive Equipment Company and Wastewater Management Corporation agree in writing to submit a dispute to arbitration.In most circumstances,submission to arbitration is possible
A)for any commercial matter.
B)for no commercial matter.
C)only after a dispute arises.
D)only before a dispute arises.

Accepted Answer

Arbitration can be used for any commercial matter as long as both parties agree to it, either before or after a dispute arises.

Question 5

Kobe files a suit against Joanna.They meet,and each party's at?torney ar?gues the party's case before a judge and jury.The jury presents an ad?vi?sory verdict,after which the judge meets with the parties to en?courage them to settle their dispute.This is
A)a mini-trial.
B)a summary jury trial.
C)early neutral case evaluation.
D)not a legitimate form of dispute resolution.

Accepted Answer

This is a summary jury trial, which is a form of alternative dispute resolution where a mock trial is conducted before a jury to give the parties an idea of how the case might turn out if it were to go to trial. After the jury presents its non-binding verdict, the parties are encouraged to settle their dispute.

Question 6

Eager Workers Union and Factory Assembly Company have their dis?pute resolved in arbitration.The arbitrator makes a mistake in a conclu?sion of law.This is a ground for a court to
A)do nothing.
B)review the merits of the dispute.
C)review the sufficiency of the evidence.
D)set aside the award.

Accepted Answer

Arbitration decisions are generally final and binding, and courts have limited grounds to intervene. A mistake in a conclusion of law by an arbitrator is typically not sufficient for a court to set aside an arbitration award.

Question 7

Jo files a suit against Lara in a Missouri state court.Lara's only connec?tion to Missouri is an ad on the Web originating in Nebraska.For Missouri to exercise jurisdiction,the issue is whether Lara,through her ad,has
A)a commercial cyber presence in Missouri.
B)conducted substantial business with Missouri residents.
C)general maximum contact with Missouri.
D)solicited virtual business in Missouri.

Accepted Answer

For Missouri to exercise jurisdiction, Lara must have conducted substantial business with Missouri residents, which would establish sufficient minimum contacts with the state.

Question 8

Lacey files a suit in Michigan against Ned over the ownership of a boat docked in a Michigan harbor.Lacey and Ned are residents of Ohio.Ned could ask for a change of venue on the ground that Ohio
A)has a sufficient stake in the matter.
B)has jurisdiction.
C)has sufficient minimum contacts with the parties.
D)is a more convenient location to hold the trial.

Accepted Answer

Ned could ask for a change of venue on the ground that Ohio is a more convenient location to hold the trial. As both Lacey and Ned are residents of Ohio, it would be more convenient for them to have the trial in their home state. However, none of the other options mentioned- jurisdiction, minimum contacts, or stake in the matter- provide a valid ground for requesting a change of venue.

Question 9

Child's Play,Inc. ,sells a toy with a dangerous defect.Drew buys the toy for his son but discovers the defect before the child is injured.Drew files a suit against Child's Play.The firm's best ground for dismissal of the suit is that Drew does not have
A)certiorari.
B)jurisdiction.
C)standing to sue.
D)sufficient minimum contacts.

Accepted Answer

Standing to sue is the legal requirement that a party must have a sufficient stake in a controversy before it can bring a lawsuit. In this case, Drew did not suffer any injury or harm from the defective toy, so he may not have sufficient standing to sue Child's Play.

Question 10

Milo files a suit against Otis.At the trial,each party's attorney pre?sents the party's case before a judge who hears the dispute and renders a le?gally binding decision.This is
A)a mini-trial.
B)a summary jury trial.
C)litigation.
D)not a legitimate form of dispute resolution.

Accepted Answer

This is litigation, a form of dispute resolution that involves a trial in court where a judge hears and decides the case. A mini-trial involves a less formal presentation of evidence, and a summary jury trial involves a mock trial with a non-binding verdict to encourage settlement negotiations. Option D is incorrect as litigation is a legitimate form of dispute resolution.

Question 11

Harvey,a resident of Indiana,has an accident with Janette,a resident of Kentucky,while driving through that state.Janette files a suit against Harvey in Kentucky.Regarding Harvey,Kentucky has
A)diversity jurisdiction.
B)in personam jurisdiction.
C)in rem jurisdiction.
D)no jurisdiction.

Accepted Answer

Kentucky has in personam jurisdiction over Harvey because he was present in Kentucky at the time of the accident and Janette filed a suit against him in that state.

Question 12

Jackson files a suit against Lance.Before going to trial,the parties,with their attorneys,meet to try to resolve their dispute.A third party sug?gests or proposes a resolution,which the parties may or may not decide to adopt.This is
A)arbitration.
B)mediation.
C)negotiation.
D)not a legitimate form of dispute resolution.

Accepted Answer

This process is mediation, where a third party proposes a resolution but the parties ultimately decide whether or not to adopt it. Arbitration involves a third party making a final decision for the parties, while negotiation is the process of the parties themselves discussing and proposing solutions. D is not a legitimate option because this is a recognized form of alternative dispute resolution.

Question 13

Pixie files a suit against Quiver.Before going to trial,the parties meet,with their attorneys to represent them,to present their dispute to a third party who is not a judge but who imposes a resolution on the par?ties.This is
A)arbitration.
B)mediation.
C)negotiation.
D)not a legitimate form of dispute resolution.

Accepted Answer

The scenario described is arbitration, where a neutral third party is appointed to make a binding decision on the dispute between the parties. Mediation involves a neutral third party facilitating negotiations between the parties to reach a mutually agreed-upon resolution, while negotiation involves the parties directly discussing and attempting to reach a resolution without the involvement of a third party. The fourth option, "not a legitimate form of dispute resolution," is not accurate as arbitration is a widely accepted and legitimate method of resolving disputes.

Question 14

Far Trade Company and Global Shipping.Inc. ,have their dispute re?solved in arbitration.The arbitrator meets with Far's representative to discuss the dispute outside the presence of Global's representative,be?fore determining the award.If this meeting substantially prejudiced Global's rights,a court will most likely
A)do nothing.
B)review the merits of the dispute.
C)review the sufficiency of the evidence.
D)set aside the award.

Accepted Answer

The answer of Far Trade Company and Global Shipping.Inc. ,have...

Question 15

Kit loses her suit against Lou in a Minnesota state trial court.Kit ap?peals to the state court of appeals and loses again.Kit would appeal next to
A)a U.S.district court.
B)the Minnesota Supreme Court.
C)the United States Supreme Court.
D)the U.S.Court of Appeals for the Eighth Circuit.

Accepted Answer

The next step after losing at the state court of appeals would be to appeal to the highest court in the state, which is the Minnesota Supreme Court. Option A (U.S. district court) is not applicable because the case is not a federal case, and option C (U.S. Supreme Court) and option D (U.S. Court of Appeals for the Eighth Circuit) are not applicable because the case has not yet gone through the federal court system.

Question 16

A clause in a contract between Tall Timber Corporation,a U.S.firm,and Wang Woods,Ltd. ,a Japanese firm,specifies that disputes over the con?tract will be adjudicated in the United States.This is
A)a domestic-dispute clause.
B)a forum-selection clause.
C)an adjudication clause.
D)an arbitration clause.

Accepted Answer

The clause specifying that disputes will be adjudicated in the United States is a forum-selection clause, as it designates the jurisdiction or forum for resolving disputes under the contract.

Question 17

Lora is a resident of Illinois.Ned is a resident of Wisconsin.They dispute the ownership of a boat docked in a Michigan harbor.This diversity of citizenship could serve as a basis for
A)federal jurisdiction.
B)general jurisdiction.
C)limited jurisdiction.
D)state jurisdiction.

Accepted Answer

Diversity of citizenship, where parties are from different states or countries, is a basis for federal jurisdiction under Article III of the U.S. Constitution. Therefore, federal courts would have the authority to rule on this dispute.

Question 18

To resolve a dispute,Amy in Boston and Chris in Denver utilize E-Solution,an online dispute resolution (ODR)service.This limits these parties' recourse to the courts
A)not at all.
B)until the ODR service has issued a decision.
C)with respect to any dispute arising between them.
D)with respect to this dispute only.

Accepted Answer

Utilizing an online dispute resolution service does not limit the parties' recourse to the courts at all unless they have agreed to be bound by the ODR decision, which is not indicated in the question.

Question 19

Tyler,a citizen of Utah,files a suit in a Utah state court against Veritas Sales Corporation,a Washington state company that does business in Utah.The court has original jurisdiction,which means that
A)the case is being heard for the first time.
B)the court has a unique method of deciding whether to hear a case.
C)the court has unusual procedural rules.
D)the subject matter of the suit is interesting and new.

Accepted Answer

Original jurisdiction means that the case is being heard for the first time, rather than being appealed from a lower court. None of the other answer choices accurately describe the concept of original jurisdiction.

Question 20

Pan American Pancake House,Inc. ,a U.S.firm,and Wallaby Waffles,Ltd. ,an Australian firm,enter into a contract that does not have a forum-selection or choice-of-law clause.Litigation between Pan American and Wallaby over a dispute involving this contract may occur in
A)Australia only.
B)Australia or the United States,but not both.
C)Australia,the United States,or both.
D)the United States only.

Accepted Answer

Since the contract does not have a forum-selection or choice-of-law clause, litigation between Pan American and Wallaby can occur in either Australia, the United States, or both, as both countries have jurisdiction over the dispute.

Quiz 2: A: Courts and Alternative Dispute Resolution

Owen,in Pennsylvania,and Quonset Structures,Inc. ,in Maryland agree to have their dispute resolved in arbitration according to the law of Virginia.This is a ground for a court to

The Idaho Supreme Court rules against Jiffy Mart in a case against Kwik Stop Stores,Inc.Jiffy Mart files an appeal with the United States Supreme Court.The Court does not hear the case.This

Massive Equipment Company and Wastewater Management Corporation agree in writing to submit a dispute to arbitration.In most circumstances,submission to arbitration is possible

Kobe files a suit against Joanna.They meet,and each party's at?torney ar?gues the party's case before a judge and jury.The jury presents an ad?vi?sory verdict,after which the judge meets with the parties to en?courage them to settle their dispute.This is

Eager Workers Union and Factory Assembly Company have their dis?pute resolved in arbitration.The arbitrator makes a mistake in a conclu?sion of law.This is a ground for a court to

Jo files a suit against Lara in a Missouri state court.Lara's only connec?tion to Missouri is an ad on the Web originating in Nebraska.For Missouri to exercise jurisdiction,the issue is whether Lara,through her ad,has

Lacey files a suit in Michigan against Ned over the ownership of a boat docked in a Michigan harbor.Lacey and Ned are residents of Ohio.Ned could ask for a change of venue on the ground that Ohio

Child's Play,Inc. ,sells a toy with a dangerous defect.Drew buys the toy for his son but discovers the defect before the child is injured.Drew files a suit against Child's Play.The firm's best ground for dismissal of the suit is that Drew does not have

Milo files a suit against Otis.At the trial,each party's attorney pre?sents the party's case before a judge who hears the dispute and renders a le?gally binding decision.This is

Harvey,a resident of Indiana,has an accident with Janette,a resident of Kentucky,while driving through that state.Janette files a suit against Harvey in Kentucky.Regarding Harvey,Kentucky has

Jackson files a suit against Lance.Before going to trial,the parties,with their attorneys,meet to try to resolve their dispute.A third party sug?gests or proposes a resolution,which the parties may or may not decide to adopt.This is

Pixie files a suit against Quiver.Before going to trial,the parties meet,with their attorneys to represent them,to present their dispute to a third party who is not a judge but who imposes a resolution on the par?ties.This is

Kit loses her suit against Lou in a Minnesota state trial court.Kit ap?peals to the state court of appeals and loses again.Kit would appeal next to

A clause in a contract between Tall Timber Corporation,a U.S.firm,and Wang Woods,Ltd. ,a Japanese firm,specifies that disputes over the con?tract will be adjudicated in the United States.This is

Lora is a resident of Illinois.Ned is a resident of Wisconsin.They dispute the ownership of a boat docked in a Michigan harbor.This diversity of citizenship could serve as a basis for

To resolve a dispute,Amy in Boston and Chris in Denver utilize E-Solution,an online dispute resolution (ODR) service.This limits these parties' recourse to the courts

Tyler,a citizen of Utah,files a suit in a Utah state court against Veritas Sales Corporation,a Washington state company that does business in Utah.The court has original jurisdiction,which means that

Pan American Pancake House,Inc. ,a U.S.firm,and Wallaby Waffles,Ltd. ,an Australian firm,enter into a contract that does not have a forum-selection or choice-of-law clause.Litigation between Pan American and Wallaby over a dispute involving this contract may occur in