Question 1

SolarCell Corp.has decided to litigate a dispute over an $8,000 outstanding account.Over the course of the business relationship,the customer has proven to be both unreliable and unreasonable.SolarCell is no longer interested in maintaining the business relationship.Which court will have jurisdiction to decide the outcome of SolarCell's claim?

Accepted Answer

Small claims courts typically handle disputes involving smaller monetary amounts, such as the $8,000 claim SolarCell Corp. is pursuing. These courts are designed to provide a simpler, faster, and less expensive process for resolving such disputes.

Question 2

Which statement best describes the duty to consult Aboriginal people?

Accepted Answer

The duty to consult Aboriginal people arises when there is a potential adverse impact on Aboriginal rights or title, even if those rights have not yet been legally proven in court.

Question 3

Which statement would be a valid criticism of the use of arbitration clauses in consumer contracts?

Accepted Answer

Arbitration clauses can limit a consumer's ability to take disputes to court, often seen as a restriction on their legal rights. This is because arbitration clauses typically require disputes to be resolved through arbitration rather than through the court system, which can be less favorable to consumers.

Question 4

What is the role of common law and statue law with regard to the litigation of a commercial dispute?

Accepted Answer

Both common law and statute law provide the substantive rules applicable to a contested matter in commercial disputes. Common law, developed through court decisions, and statute law, created by legislative bodies, together form the legal framework that governs the resolution of these disputes.

Question 5

What difference between litigation in Canada and litigation in the United States causes concern for Canadian companies that do business in the U.S.marketplace?

Accepted Answer

In the United States, the rule that the losing party does not typically have to pay the winner's legal costs can lead to more litigation, as there is less financial risk for a party to bring a lawsuit. This contrasts with the Canadian system, where the losing party often must contribute to the winning party's costs, discouraging frivolous or weak cases.

Question 6

What is the rationale for strict limitation periods?

Accepted Answer

Strict limitation periods are designed to prevent plaintiffs from bringing forward claims after a significant amount of time has passed, during which evidence could have been lost or become less reliable, ensuring fairness in the judicial process.

Question 7

Walter receives and considers submissions from both parties involved in a commercial dispute.He will deliver his decision shortly.In accordance with the terms of the contract governing the disputing parties' relationship,they are bound to comply with that decision.What role does Walter play in providing a resolution to this dispute?

Accepted Answer

Walter is acting as an arbitrator, a neutral third party who makes a binding decision in a dispute based on the evidence and arguments presented by the parties involved. This is in line with arbitration processes where the decision is binding as per the terms of the contract between the disputing parties.

Question 8

A mediator attempting to negotiate a resolution to a commercial dispute has conceded that she is unable to move the dispute through the mediation process.What would the mediator most likely say is the main factor contributing to the failed mediation?

Accepted Answer

The main factor contributing to a failed mediation is often the unwillingness of one party to compromise and quickly resolve the issues. This lack of cooperation can stall the mediation process, making it difficult for the mediator to facilitate a resolution.

Question 9

The activities of a large multinational corporation violated federal and provincial environmental laws.It polluted a clean water source and caused illness among the people and wildlife inhabiting the affected area.What would the corporation's lawyers most likely suggest as the main reason for attempting to force resolution of the legal dispute through ADR?

Accepted Answer

ADR (Alternative Dispute Resolution) allows for privacy and confidentiality, which corporations may prefer to avoid public scrutiny and protect their reputation.

Question 10

Abacus Industries is considering arbitration to resolve its dispute with a foreign supplier.Which statement best describes why arbitration is popular for settling international commercial disagreements?

Accepted Answer

The answer of Abacus Industries is considering arbitration to resolve...

Question 11

How does a court order of costs at the conclusion of a lawsuit impact the litigation process?

Accepted Answer

Court orders of costs typically provide partial reimbursement of legal expenses to the successful party, rather than ensuring full reimbursement or covering all legal expenses of one side. This can impact the litigation process by influencing parties' decisions on whether to proceed with or settle a lawsuit, based on potential financial outcomes.

Question 12

What is one of the advantages of mediation as a form of alternative dispute resolution?

Accepted Answer

Mediation often has a high success rate, with approximately 80% of mediations resulting in a resolution. This is because mediation allows parties to openly discuss their issues and work collaboratively towards a mutually acceptable solution, facilitated by a mediator.

Question 13

Which circumstance would cause a risk management department to consider referring a commercial dispute to alternative dispute resolution?

Accepted Answer

Alternative dispute resolution (ADR) is often sought when parties desire a quick resolution, especially for minor issues. ADR methods, such as mediation or arbitration, can provide faster outcomes compared to traditional litigation, making it a suitable option for parties prioritizing speed.

Question 14

What is the purpose of the discovery phase in a private lawsuit?

Accepted Answer

The discovery phase is intended to allow both parties to disclose evidence and assess the strength of the opposing party's claims, facilitating a fair trial by ensuring both sides have access to relevant information.

Question 15

While negotiation can be used to resolve almost any type of dispute,what is one situation where a business should not proceed with negotiation?

Accepted Answer

The answer of While negotiation can be used to resolve...

Question 16

Dante is a claims adjuster with the insurer of a supermarket chain and has just concluded successful negotiations with a customer who was injured as a result of slipping on ice in a store parking lot.Which step should now take place?

Accepted Answer

The next step after successful negotiations regarding an injury claim is typically for the parties to enter into a settlement or release agreement. This legally binding document outlines the terms of the settlement, including any compensation to be paid to the injured party, and releases the insurer and the supermarket chain from further liability.

Question 17

Which statements best describes one of the features of alternative dispute resolution?

Accepted Answer

Alternative dispute resolution (ADR) methods, such as mediation and arbitration, are often faster than going through the court system, which can be slow due to procedural requirements and backlogs. ADR processes are designed to be more efficient, allowing parties to resolve disputes more quickly.

Question 18

Incida Homes negotiated a settlement with a customer that had initially refused to pay for renovation work it carried out.The customer claimed there were numerous deficiencies with Incida's work and the settlement agreement they reached included a reduction in the amount initially charged for its services.What likely had the greatest motivating influence on the disputing parties to achieve a remedy through this form of dispute resolution?

Accepted Answer

Settlement agreements are often pursued to realize cost and time savings for the concerned parties, avoiding the lengthy and expensive process of litigation.

Question 19

A store manager of a large grocery chain makes a verbal offer to compensate a customer for a serious hand injury that requires medical attention.Even though the store manager's offer is refused,he is seriously reprimanded by the vice president of the legal risk department.What was the vice president's most significant concern?

Accepted Answer

The vice president's most significant concern likely revolves around the potential for the store manager's actions (negotiating or making an offer) to imperil the company's risk insurance coverage. Unauthorized negotiations or admissions of liability can affect the terms and conditions of insurance policies, potentially leading to coverage issues or increased premiums.

Question 20

Davey Jones Law Offices acts as legal counsel to a large commercial client.The client has instructed Mr.Jones to prepare and file a litigation claim naming a competitor as the opposing party in the lawsuit.What title is given to the opposing party in the initiating document?

Accepted Answer

The opposing party in a litigation claim, especially in the context of the initiating document, is referred to as the "defendant." This term is used to denote the party against whom the lawsuit is filed.

Quiz 4: Dispute Resolution