Question 1

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

The answer of To resolve a dispute, Amy in Boston...

Question 2

Dick submits his claim against EZ Sales Corporation to FairSettle.com, a private, online dispute resolution forum. At any time, an appeal of the dispute to a court may be made by
A) Dick only.
B) Dick or EZ.
C) EZ only.
D) neither Dick nor EZ.

Accepted Answer

Both parties, Dick and EZ, have the option to appeal the decision to a court. FairSettle.com is a private, online dispute resolution forum, but it does not prevent either party from seeking further legal action.

Question 3

Fact Pattern 2-A1 
Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract.
-Refer to Fact Pattern 2-A1. Resolving the dispute between Java and Kaffe by having a neutral third party render a binding decision is one of the ad?vantages of
A) arbitration.
B) conciliation.
C) intervention.
D) mediation.

Accepted Answer

Arbitration allows for a neutral third party to render a binding decision, which would be a suitable method for resolving the dispute between Java Cafes, Inc., and Kaffe Import Corporation. Conciliation involves a third party who assists in reaching a mutually acceptable solution, but the decision is not necessarily binding. Intervention involves a third party who becomes involved in the dispute on behalf of one of the parties, but does not necessarily render a decision. Mediation also involves a third party who assists in reaching a mutually acceptable solution, but the decision is not necessarily binding.

Question 4

Quik Results, Inc., a Maine corporation, makes and sells Power Up!, a weight-gain and muscle-building supplement. Orin, a citizen of New York, sees an ad for Power Up! in WorkOut magazine and buys it in New York City at a local health club. Within ten days of beginning to use Power Up!, Orin suffers internal injuries. Alleging that the injuries are caused by Power Up!, Orin files a suit against Quik in a New York state court. Quik asks the court to dismiss the suit on the ground that it does not have personal jurisdiction over Quik. What is the court most likely to rule and why?

Accepted Answer

The answer of Quik Results, Inc., a Maine corporation, makes...

Question 5

United, Inc., a U.S. firm, and Wallaby, Ltd., an Australian firm, enter into a contract that does not have a forum-selection or choice-of-law clause. Litigation between United 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

In the absence of a forum-selection or choice-of-law clause, there is no predetermined jurisdiction or applicable law. Therefore, litigation over the dispute can occur in either Australia or the United States, or both. Both parties will have to make arguments supporting the jurisdiction they prefer or where the dispute has the closest connection.

Question 6

Transnational Corporation and UniShip, Inc., agree to a contract that includes an arbitration clause. If a dispute arises, a court having ju?ris?dic?tion may
A) monitor any arbitration until it concludes.
B) order an arbitrator to rule in a particular way.
C) order a party to bring the dispute to court.
D) order a party to submit to arbitration.

Accepted Answer

The arbitration clause in the contract means that the parties have agreed to resolve any disputes through arbitration rather than going to court. If a dispute does arise, a court may order a party to submit to arbitration, which means they must participate in the arbitration process as agreed upon in the contract. The court cannot order an arbitrator to rule in a particular way or monitor the arbitration, as the process is meant to be a private resolution outside of the court system. The court also cannot order the parties to bring the dispute to court since they have already agreed to resolve it through arbitration.

Question 7

Far Trade Company and Good Shipping. Inc., have their dispute re?solved in arbitration. The arbitrator meets with Far's representative to discuss the dispute outside the presence of Good's representative, before determining the award. If this meeting substantially prejudiced Good'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 Good Shipping. Inc.,...

Question 8

Jen files a suit against Kyle. 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 renders a legally binding decision. This is
A) arbitration.
B) litigation.
C) mediation.
D) negotiation.

Accepted Answer

The scenario describes a process of resolving a dispute outside of court, with the parties submitting to a third party who makes a binding decision. This is characteristic of arbitration, where the parties agree to have an arbitrator decide their case instead of going to trial. Litigation refers to a formal lawsuit process that typically involves going to court, and mediation involves a neutral third party facilitating negotiations between the parties to reach a mutually agreeable solution. Negotiation refers to the process of the parties directly discussing and trying to settle their dispute without third-party involvement.

Question 9

Fact Pattern 2-A1 
Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract.
-Refer to Fact Pattern 2-A1. The least expensive method to resolve the dis?pute between Java and Kaffe may be
A) arbitration because the case will be heard by a mini-jury.
B) litigation because each party will pay its own legal fees.
C) mediation because the dispute will be resolved by a non-expert.
D) negotiation because no third parties are needed.

Accepted Answer

Negotiation is the best choice because it is the least expensive method and does not involve third parties, allowing Java and Kaffe to directly communicate and attempt to come to a resolution. If negotiation fails, other options such as mediation or arbitration can still be considered.

Question 10

Edie files a suit against Frank. If this suit is like most cases, it will be
A) dismissed during a trial.
B) dismissed or settled before a trial.
C) resolved only after a trial.
D) settled at a trial.

Accepted Answer

The majority of cases (over 90%) are settled or dismissed before a trial takes place. Only a small percentage (less than 10%) actually go to trial and result in a resolution.

Question 11

Eager Workers, Inc., and Factory Assembly Company have their dispute resolved in arbitration. The arbitrator makes a mistake in a conclusion 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

The mistake made by the arbitrator in a conclusion of law is a ground for a court to set aside the award. Therefore, the best choice in this scenario is option D.

Question 12

Molly files a suit against Nick. They meet, and each party's at?torney ar?gues the party's case before a judge and jury. The jury presents an advi?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) court-ordered arbitration.
D) early neutral case evaluation.

Accepted Answer

This scenario describes a summary jury trial, in which both parties present a shortened version of their case to a jury, who then presents an advisory verdict. The judge then encourages the parties to settle their dispute based on the jury's feedback.

Question 13

Consumer Sales Corporation and Dion agree to re?solve their dispute in arbitration. The arbitrator's decision is called
A) a conclusion of law.
B) a finding of fact.
C) an award.
D) a verdict.

Accepted Answer

When parties agree to resolve their dispute in arbitration, the arbitrator's decision is called an award. Choices A, B, and D are terms that are typically associated with court proceedings, not arbitration.

Question 14

Sally and Tom disagree over the amount of money due under their con?tract. To avoid involving any third party in a resolution of the dispute, Sally and Tom might prefer to use the alternative dispute resolution method of
A) arbitration.
B) litigation.
C) mediation.
D) negotiation.

Accepted Answer

Negotiation is a method of dispute resolution where the parties involved directly communicate with each other to reach a mutually agreeable solution without involving any third party.

Question 15

Vince files a suit against Will. Vince and Will meet, and each party's at?torney argues the party's case before a judge and jury. The jury presents an advisory verdict, after which the judge meets with the parties to en?courage them to settle their dispute. This is
A) court-ordered arbitration.
B) early neutral case evaluation.
C) a mini-trial.
D) a summary jury trial.

Accepted Answer

This scenario describes a summary jury trial, as it involves a proceeding in front of a judge and jury where the jury presents an advisory verdict, followed by the judge encouraging the parties to settle their dispute.

Question 16

Jan and Kyle sign a contract that provides that if a dispute arises, they will submit to arbitration. A dispute arises, but before it goes to arbitration, Jan files a suit against Kyle. The court will likely
A) hear the suit and then order the parties to arbitrate.
B) hear the suit without ordering the parties to arbitrate.
C) order relief without hearing the suit or compelling the parties to arbitrate.
D) order the parties to arbitrate.

Accepted Answer

The court will likely order the parties to arbitrate because they have a pre-existing agreement to resolve disputes through arbitration, which is generally enforceable under the Federal Arbitration Act.

Question 17

Owen, in Pennsylvania, and Quik Jobs, 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 parties have agreed to arbitration and chosen Virginia law to govern the arbitration process. Courts generally do not interfere with arbitration agreements unless there is a specific legal reason to do so, such as fraud or a violation of public policy.

Question 18

A clause in a contract between Timber Corporation, a U.S. firm, and Wang, 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. Forum-selection clauses are designed to avoid disputes over jurisdictional issues and clarify where disputes will be handled if they do arise. In this case, the clause specifies that U.S. courts will have jurisdiction over any disputes that arise between the two parties.

Question 19

Cody wants to appeal his case against Digital Corporation to the United States Supreme Court. Cody must ask the Court to issue a writ of
A) certiorari.
B) jurisdiction.
C) standing.
D) venue.

Accepted Answer

Cody must ask the Court to issue a writ of certiorari, which is a request for the Supreme Court to review the decision of a lower court. It allows the Court to exercise its discretionary jurisdiction in selecting which cases to hear. Jurisdiction refers to the Court's authority to hear a case, standing refers to a person's legal right to bring a case, and venue refers to the location of the court where a case is heard.

Question 20

Fact Pattern 2-A1 
Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract.
-Refer to Fact Pattern 2-A1. If Java and Kaffe have a long-standing business relationship that they would like to continue, a preferred method of set?tling their dispute may be mediation because
A) the case will be heard by a mini-jury.
B) the dispute will eventually go to trial.
C) the process is not adversarial.
D) the resolution of the dispute will be decided an expert.

Accepted Answer

Mediation is a preferred method of settling disputes when the parties have a long-standing business relationship that they would like to continue, because it is a non-adversarial process. A mediator helps the parties explore their options and reach a mutually agreeable solution, without the need for a trial or a decision by an expert.

Quiz 2: Courts and Alternative Dispute Resolution

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

Dick submits his claim against EZ Sales Corporation to FairSettle.com, a private, online dispute resolution forum. At any time, an appeal of the dispute to a court may be made by

Fact Pattern 2-A1 Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract. -Refer to Fact Pattern 2-A1. Resolving the dispute between Java and Kaffe by having a neutral third party render a binding decision is one of the ad?vantages of

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

Transnational Corporation and UniShip, Inc., agree to a contract that includes an arbitration clause. If a dispute arises, a court having ju?ris?dic?tion may

Jen files a suit against Kyle. 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 renders a legally binding decision. This is

Fact Pattern 2-A1 Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract. -Refer to Fact Pattern 2-A1. The least expensive method to resolve the dis?pute between Java and Kaffe may be

Edie files a suit against Frank. If this suit is like most cases, it will be

Eager Workers, Inc., and Factory Assembly Company have their dispute resolved in arbitration. The arbitrator makes a mistake in a conclusion of law. This is a ground for a court to

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

Consumer Sales Corporation and Dion agree to re?solve their dispute in arbitration. The arbitrator's decision is called

Sally and Tom disagree over the amount of money due under their con?tract. To avoid involving any third party in a resolution of the dispute, Sally and Tom might prefer to use the alternative dispute resolution method of

Vince files a suit against Will. Vince and Will meet, and each party's at?torney argues the party's case before a judge and jury. The jury presents an advisory verdict, after which the judge meets with the parties to en?courage them to settle their dispute. This is

Jan and Kyle sign a contract that provides that if a dispute arises, they will submit to arbitration. A dispute arises, but before it goes to arbitration, Jan files a suit against Kyle. The court will likely

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

Cody wants to appeal his case against Digital Corporation to the United States Supreme Court. Cody must ask the Court to issue a writ of

Fact Pattern 2-A1 Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract. -Refer to Fact Pattern 2-A1. If Java and Kaffe have a long-standing business relationship that they would like to continue, a preferred method of set?tling their dispute may be mediation because