Chapter 4 Quiz

Question 1

Milo files a suit against Otis. At the trial, each party’s attorney pre­sents the party’s case before a judge who hears the dispute and renders a le­gally binding decision. This is
a. a mini-trial.
b. not a legitimate form of dispute resolution.
c. litigation.
d. a summary jury trial.

Answer 1

c

Question 2

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 sug­gests or proposes a resolution, which the parties may or may not decide to adopt. This is
a. negotiation.
b. mediation.
c. arbitration.
d. not a legitimate form of dispute resolution.

Answer 2

b

Question 3

Lamont files a suit against Melvin. 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. mediation.
b. arbitration.
c. negotiation.
d. not a legitimate form of dispute resolution.

Answer 3

b

Question 4

QuikSet Concrete Company and Rocky’s Quarry, Inc., agree in writing to submit a dispute to non-binding arbitration, which means

a. the arbitration decision is final.
b. the parties can sue in court.
c. there will be no awarding of damages.
d. the terms of the agreement are dictated.b

Answer 4

b

Question 5

Jane and Kristy sign a contract that provides that if a dispute arises, they will submit to arbitration. A dispute arises, but before it goes to arbitration, Jane files a suit against Kristy. The court will likely
a. hear the suit and then order the parties to arbitrate.
b. order relief without hearing the suit or compelling the parties to arbitrate.
c. hear the suit without ordering the parties to arbitrate.
d. order the parties to arbitrate.

Answer 5

d

Question 6

Seaside Hotels, Inc., adopts an alternative dispute resolution (ADR) pro­gram. Tess, a part time minimum wage employee, signs an agreement under which arbi­tration is subject to Seaside’s rules. When a dispute arises, Tess refuses to arbitrate. Seaside files a suit to compel arbitration. The court will most likely

a. Penalize Tess for wasting everyone’s time.

b. refuse to order arbitration.

c. order arbitration but suspend Seaside’s rules.

d. order arbitration according to Seaside’s rules.

Answer 6

d

Question 7

EZ Assembly, Inc., and Factory Outlet Stores 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. review the sufficiency of the evidence.
b. do nothing.
c. review the merits of the dispute.
d. set aside the award.

Answer 7

b

Question 8

O’Reilly files a suit against Petrarch. They meet, and each party’s at­tor­ney 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 en­cour­age them to settle their dispute. This is
a. early neutral case evaluation.
b. a mini-trial.
c. a summary jury trial.
d. court-ordered arbitration.

Answer 8

c

Question 9

To resolve a dispute, Ripley in South Dakota and Tyler in Utah utilize Virtual Solution, an online dispute resolution (ODR) service. This limits these parties’ recourse to the courts
a. with respect to this dispute only.
b. with respect to any dispute arising between them.
c. not at all.
c. until the ODR service has issued a decision.

Answer 9

c

Question 10

Velvety Pancake House, Inc., a U.S. firm, and Wallaby Waffles, Ltd., an Australian firm, enter into a contract that has a forum-selection of the United States. Litigation between Velvety and Wallaby over a dispute involving this contract may occur in

a. Australia or the United States, but not both.

b. the United States only.

c. Australia only.

d. Australia, the United States, or both.

Answer 10

b