Chapter 4 - Alternative Tools Of Disbute Resolution

Question 1

Factors Considered in deciding whether to bring or settle a lawsuit:

Answer 1

1. The probability of winning or losing
2. The amount of money to be won or lost
3. Lawyers’ fees and other costs of litigation
4. Loss of time by managers and other personnel
5. The unpredictability of the legal system and the possibility of error
6. Other factors peculiar to the parties and lawsuit
7. The long-term effects of the relationship and reputation of the parties
8. The amount of prejudgment interest provided by the law
9. The aggravation and psychological costs associated with a lawsuit

Question 2

Alternative Dispute Resolution (ADR)

Answer 2

Methods of resolving disputes other than litigation

Developed in response to the expense and difficulty of bringing a lawsuit

Question 3

Types of ADR:

Answer 3

1. Arbitration
2. Mediation
3. Conciliation
4. Mini trial
5. Fact-finding
6. Judicial Referee

Question 4

Arbitration

Answer 4

Parties choose neutral third party to hear evidence and testimony and decide the case
Arbitrator makes a decision and enters an award
Arbitration may be binding or nonbinding

Question 5

Uniform Arbitration Act:

Answer 5

Adopted by half of the states

Promotes the arbitration of disputes at the state level

Question 6

Federal Arbitration Act

Answer 6

Arbitration agreements involving commerce are valid, irrevocable, and enforceable contracts

Question 7

Mediation

Answer 7

Parties choose a neutral third party to assist them
Parties reach settlement
Mediator does not make judgment or issue award

Question 8

Conciliation

Answer 8

Parties use an interested third party to act as a mediator

Question 9

Minitrial:

Answer 9

Short session in which lawyers for each side present their cases for representatives of each party who have the authority to settle the dispute

Question 10

Fact-finding

Answer 10

Process in which the parties hire a neutral third party to investigate the dispute and report findings back to both sides

Question 11

Judicial Referee

Answer 11

Court appointed referee who conducts a private trial and renders a judgment
Parties reserve their right to appeal