Question 1

A neutral third-party decision maker has power to resolve disputes in arbitration and litigation,but not in negotiation or mediation.

Accepted Answer

This is because negotiation and mediation rely on the parties themselves to come to a mutually agreed-upon resolution, whereas arbitration and litigation involve a third party making a binding decision.

Question 2

The bargaining zone is the area in which parties to a negotiation are willing to trade,barter,or negotiate their positions and within which the parties can find an acceptable agreement.

Accepted Answer

This accurately describes the concept of the bargaining zone in a negotiation.

Question 3

Alternative dispute resolution ADR)is a term that encompasses many different methods of dispute resolution processes other than litigation.

Accepted Answer

ADR includes methods such as mediation, arbitration, negotiation, and others that are alternatives to going to court.

Question 4

Negotiation is often viewed as a win-win alternative dispute resolution strategy,where both parties try to reach a mutually satisfactory outcome.

Accepted Answer

Negotiation is generally seen as a collaborative process in which both parties work together to find a solution that meets their needs and interests. The goal is to create a win-win outcome, where both sides benefit and are content with the terms of the agreement.

Question 5

An absolute refusal to take less than $10,000 per acre in a land deal would be considered a "reservation point."

Accepted Answer

A reservation point is the minimum acceptable outcome in a negotiation or deal. In this case, the absolute refusal to take less than $10,000 per acre represents the reservation point for the land deal.

Question 6

The New York Convention is a federal statute that requires parties to submit to arbitration to resolve disputes if the contract into which they have entered mandates such arbitration.

Accepted Answer

The New York Convention is an international treaty that requires courts of contracting states to give effect to private agreements to arbitrate and to recognize and enforce arbitration awards made in other contracting states, not a federal statute.

Question 7

In today's economy,manufacturers call the shots and typically enjoy a superior bargaining position.

Accepted Answer

In today's economy, the power dynamics between manufacturers and retailers or consumers have shifted significantly due to globalization, increased competition, and the rise of digital platforms, leading to more balanced or even consumer-favored bargaining positions.

Question 8

Litigation is the best method of alternative dispute resolution to achieve a "win-win" outcome for both parties.

Accepted Answer

Litigation is not considered an alternative dispute resolution method, but rather a traditional legal process in which a judge or jury makes a final decision after hearing evidence and arguments from both parties. This often results in a "win-lose" outcome, where one party prevails and the other does not. Alternative dispute resolution methods such as mediation, negotiation, and arbitration are usually preferred for their potential to reach a mutually beneficial outcome for all parties involved.

Question 9

One of the benefits of negotiation is that it provides clear,set rules and obligates both parties to negotiate until a satisfactory conclusion has been reached.

Accepted Answer

Negotiation is a process aimed at reaching a mutual agreement, but it does not inherently provide clear, set rules nor obligate both parties to continue until a satisfactory conclusion is reached; the flexibility and voluntary nature of negotiation mean parties can walk away if they choose.

Question 10

All states require mediators to be licensed attorneys.

Accepted Answer

While some states may require mediators to have a law degree or legal background, not all states require mediators to be licensed attorneys. In fact, many states have alternative pathways for mediators to become certified or recognized without being attorneys.

Question 11

The book "Getting to Yes" focuses on principled negotiation.

Accepted Answer

"Getting to Yes" is a renowned book on negotiation that focuses on the concept of principled negotiation.

Question 12

Alternative dispute resolution is often used to resolve legal disputes when litigation has failed to reach a conclusion.

Accepted Answer

Alternative dispute resolution (ADR) is typically used to resolve disputes before litigation or as an alternative to it, not necessarily after litigation has failed.

Question 13

A business to business negotiation is potentially unbalanced when one party has a much more powerful bargaining position than the other.

Accepted Answer

A power imbalance can arise due to differences in size, resources, brand recognition, or other factors, which can create challenges for the weaker party during negotiations.

Question 14

Alternative dispute resolution methods are outside of the interests of the legal system.

Accepted Answer

Alternative dispute resolution methods, such as mediation and arbitration, are actually encouraged by the legal system as a way to alleviate caseloads and provide faster, more cost-effective solutions for parties involved in legal disputes. Courts often require parties to attempt alternative dispute resolution before proceeding to a trial.

Question 15

One of the best ways for parties to resolve simple legal disputes is to litigate their claims against each other,especially if they wish to maintain an ongoing business relationship with no hard feelings.

Accepted Answer

Litigation can be costly, time-consuming, and often leads to a strained relationship between the parties involved. Alternative dispute resolution methods, such as mediation or arbitration, may be more effective in resolving simple legal disputes while also preserving the relationship between the parties.

Question 16

Alternative dispute resolution may be attempted prior to litigation to resolve legal disputes.

Accepted Answer

Alternative dispute resolution (ADR) methods such as mediation or arbitration are often used in an attempt to resolve legal disputes before resorting to formal litigation.

Question 17

"Win-Win" is always the principle goal in any litigation.

Accepted Answer

Litigation often involves a win-lose scenario where one party wins at the expense of the other, rather than a win-win outcome. The principle goal is to resolve the dispute in favor of one's client.

Question 18

Arbitration and Litigation are considered much more Consensual actions on the ADR continuum,allowing parties to retain control over the process and ultimately decide the outcome.

Accepted Answer

Arbitration and Litigation are not considered consensual actions on the ADR continuum as they are typically initiated when the parties cannot reach a voluntary agreement and are subject to court or arbitrator decisions. The parties may have some control over certain aspects of the process, but the outcome is ultimately decided by the third-party decision-maker.

Question 19

Parties with unequal bargaining power often form a mentor-mentee relationship during negotiations,where the most powerful party teaches the least power party how to negotiate,but never takes advantage of the power differential.

Accepted Answer

It is not always the case that the most powerful party is benevolent and teaches the least powerful party how to negotiate. In many cases, the powerful party may take advantage of the power differential and exploit the weaker party. However, in some situations, mentor-mentee relationships may develop in negotiations, but it is not a universally observed phenomenon.

Question 20

Litigation is a method of alternative dispute resolution in which the parties retain power to decide on a resolution themselves,without relying on a neutral decision maker.

Accepted Answer

This is a false statement. Litigation involves going to court and having a neutral judge or jury decide the resolution of the dispute.

Quiz 4: Alternative Dispute Resolution