Chapter 8 - Negotiation, Mediation, and Arbitration

Question 1

Alternative Dispute Resolution (ADR)

Answer 1

• What you can do instead of going to court.
• Negotiation
• Mediation
• Arbitration

Question 2

Negotiation

Answer 2

• 2 parties are disputing try to resolve the dispute on their own with no other 3rd party involved.
• Must be willing to compromise.

Question 3

Mediation

Answer 3

• Have a 3rd party involved (a MEDIATOR) who is independent to help resolve the dispute.
• Mediators decisions or actions ARE NOT binding.

Question 4

Arbitration

Answer 4

• More formal process
• The 3rd parties (ARBITRATOR) decision is binding.
• The parties waive their right to go to court
• Parties submit the dispute to an arbitrator = SUBMISSION.
• Arbitrator makes an AWARD = decision
• Courts rarely review arbitration awards because IT IS BINDING except in fraud.

Question 5

Federal Arbitration Act

Answer 5

Supportive of people engaging in arbitration clauses. Makes them binding.

Question 6

Buckeye Check Cashing Inc. v. Cardegna

Answer 6

• Company was charging an excessive interest rate.
• Person borrowing the money said they wouldn’t pay it, but they had signed the contract that said they must go to arbitration rather than court.
• Court said you still have to go to arbitration and couldn’t hear the case.
• Unless the challenge is to the arbitration clause itself, the parties cannot go to court…they must arbitrate.