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The resolution of legal disputes through methods other than litigation is called CAR.

A) True
B) False

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In the United States Supreme Court case Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, provided in part in the text, the Court was trying to decide what in regards to an international transaction?


A) The Court was deciding whether or not American courts have jurisdiction to hear an arbitration agreement between different international companies.
B) The Court was determining whether or not an arbitration agreement to resolve antitrust claims through a binding arbitration agreement between the parties should be upheld.
C) Whether or not Mitsubishi had the right to appeal in an American court.
D) The Court did not hear the case because it determined there was not federal substantive law in the area of international arbitration agreements.
E) The Court ruled that the arbitration clause at issue should be determined by a Japanese court, not an American court, since that was where Mitsubishi was located.

F) C) and D)
G) A) and E)

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[Jade Shoes] Coleman owns a sporting goods store and has purchased top-quality, brand-name athletic shoes from Jade's Shoe Distribution for many years, but they have no written contract in place. Last month, Coleman learned that the latest shipment from Jade's are not authentic, brand-name shoes but instead a knock-off brand that costs a fraction of the price Coleman pays. Coleman cannot sell these shoes because his customers would know the difference, and Coleman demanded Jade refund him. Jade sent Coleman a written request for arbitration within thirty days. In response, Coleman called Jade, threatening to file a lawsuit against Jade and exposing her company as a fraud. Jade laughs, saying Coleman is required to arbitrate their dispute within thirty days. -Is Jade correct that they are required to arbitrate their dispute?


A) Yes, Jade demanded in writing that they arbitrate their dispute.
B) Yes, but only because Jade's written demand had a thirty day deadline.
C) No, a party is never required to arbitrate.
D) No, arbitration is voluntary and Coleman never signed an agreement to arbitrate their disputes.
E) No, a party cannot enter a contract that requires them to arbitrate instead of filing a lawsuit.

F) None of the above
G) B) and D)

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[Pet Pics] Ari went to work as an independent contracting photographer for Wild Pet Pics, a company specializing in photographing exotic pets, such as monkeys and snakes, with their owners. The company's home office was in California, but Ari worked in Florida. Before he started work, Ari signed an agreement to arbitrate any dispute he had with the company. The arbitration agreement provided that in the event of a dispute, Ari would completely cover the cost of the arbitration; that he could only receive up to $150 in damages regardless of his claims, punitive or otherwise; and that any arbitration would be conducted at the company's home office. The agreement also provided that the arbitrator was not bound to strictly follow the official court rules of evidence. Ari signed the agreement because he really needed a job and liked animals. His only previous animal photography experience, however, had been with cats and dogs. Ari's contract provided that he would be paid $100 per shoot and that the company would take steps to ensure his safety. One day he was called in to photograph a skunk and its owner. He was told by the receptionist at Wild Pet Pics that the skunk had been altered so that it could not spray. Ari felt safe. Unfortunately, the skunk had not been altered. Just as he was starting to shoot, the skunk became upset. It ran towards Ari, sprayed Ari, and in the resulting commotion, Ari's expensive camera was knocked over and broken. Plus, Ari's clothes were ruined and he stank for days. Ari wants to sue Wild Pet Pics for $5,000 to cover the cost of his camera, his clothing, and his general smelliness for several days. Ari says that he cannot afford to pay for the arbitration. -Will Ari likely be bound by the arbitration provision that he can only receive $150 in damages?


A) Yes, he signed the agreement.
B) He will likely be bound only if the company can show that it has not made a substantial profit in the past 12 months.
C) If an arbitration award on that basis is appealed, a federal district judge would likely find the provision unenforceable.
D) He can avoid the provision if he testifies that he did not read it before signing the agreement.
E) He will likely be bound unless he can show that the company made a misrepresentation to him.

F) A) and B)
G) A) and C)

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[MegaTron] Emilia filed a charge of discrimination with the Equal Employment Opportunity Commission (EEOC) , alleging that her employer, MegaTron, failed to promote her because of her nationality and gender. The EEOC had already received several discrimination charges from other employees alleging similar conduct by MegaTron. When Emilia was hired, she signed an employment contract with a clause stating that all work-related claims must be resolved through arbitration. -Assume Emilia opted to arbitrate her claim against MegaTron, and the arbitrator awarded her $2,000,000 in punitive damages. MegaTron's officers were appalled and filed a lawsuit seeking to set aside the arbitrator's award. On what basis could a court overturn the arbitrator's award?


A) That Emilia may have been lying when she testified during the arbitration.
B) That Emilia did not want to arbitrate.
C) That the arbitrator misused his authority in making the award.
D) That the parties agreed in advance not to give closing statements.
E) That the arbitrator told the parties in advance that he worked at MegaTron thirty years ago and disclosed this fact in writing.

F) C) and D)
G) A) and B)

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Which of the following is helping more and more litigants in resolving e-commerce disputes?


A) United States Supreme Court
B) The Patent and Trademark Office
C) Arbitrators International
D) National Arbitration Forum
E) International Forum of ADR

F) A) and B)
G) A) and D)

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Victor signs an arbitration agreement providing that he will arbitrate any disputes with his employer, Business Corp. Victor believes that Business Corp. has discriminated against him in violation of the Americans with Disabilities Act. The EEOC also investigated the situation and brought an action against Business Corp. alleging that Business Corp. discriminated against Victor in violation of the Americans with Disabilities Act. What is the effect of the arbitration clause in regards to the action brought by the EEOC?


A) The arbitration clause is enforceable and binding on the EEOC.
B) The arbitration clause is enforceable and binding on the EEOC only if Business Corp. provided the EEOC with a copy of the agreement before the suit was filed.
C) The arbitration clause is enforceable and binding on the EEOC only if Victor is the only employee in the company who has allegedly been discriminated against under the Americans with Disabilities Act.
D) The arbitration clause is not binding on the EEOC.
E) The EEOC can avoid the arbitration clause only if it can show that it prosecuted Business Corp in the past and that Business Corp. is a repeat offender.

F) B) and D)
G) C) and D)

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How are arbitrations similar and dissimilar to a court trial?

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Arbitrations are similar to a court tria...

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Melanie and Gabriela have a dispute regarding ownership of a dog, Buddy. Gabriela removed Buddy's tags in order to give him a bath. Knowing what was coming, Buddy made a run for it and ended up at Melanie's home down the street. When Gabriela saw Melanie walking Buddy, she demanded his return. Melanie refused. A lawyer in the neighborhood suggested either a neutral case evaluation or mediation in an attempt to resolve the feud. Describe mediation and neutral case evaluation. Which would you suggest and why?

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Mediation occurs when the parties hire a...

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Arbitration is the primary ADR process used in federal district courts.

A) True
B) False

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A ________ trial is an abbreviated trial that leads to a non-binding jury verdict.


A) summary jury
B) jury stipulation
C) verdict of the jury
D) completed jury
E) mediation jury

F) A) and B)
G) B) and E)

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In the case of Robert Gilmer v. Interstate/Johnson Lane Corporation involving whether a claim under the federal Age Discrimination in Employment Act was subject to arbitration, what did the U.S. Supreme Court rule?


A) That the agreement by which the plaintiff agreed to arbitrate all employment disputes as a condition of his employment was valid.
B) That the text of the federal Age Discrimination in Employment Act prohibited arbitration.
C) That the EEOC would be bound by the employee's agreement to arbitrate all employment disputes and that, therefore, requiring arbitration would be improper.
D) That compulsory arbitration improperly deprived the plaintiff of a public forum through which to prove his claims.
E) That arbitration was an inadequate remedy because arbitrators may not fashion equitable remedies.

F) A) and B)
G) A) and D)

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________ is a dispute resolution process in which the parties agree to mediation and if the mediation is unsuccessful on one or more points, the parties move on to arbitration.


A) Mini jury trial
B) Summary jury trial
C) Med-arb
D) Factual summary hearing
E) Litigated dispute trial

F) C) and D)
G) B) and D)

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What is a criticism of arbitration, according to the text?


A) That arbitration is more expensive than court litigation.
B) That companies and employers can more easily hide disputes.
C) That it is too easy to get an arbitration award reversed by a judge.
D) That parties have less control through the arbitration process than through a judicial action.
E) That arbitration actions are less private than judicial actions.

F) C) and D)
G) All of the above

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Which of the following is not necessarily considered an alternative to litigation?


A) Mediation
B) Arbitration
C) Private trial
D) Negotiation
E) Early neutral case evaluation

F) B) and C)
G) A) and B)

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Mediators are always retired judges who can mediate based on their experiences on the bench.

A) True
B) False

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An arbitrator is more likely to issue a compromise decision than a judge.

A) True
B) False

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Mark and Elizabeth have a dispute over who breached a contract between their respective companies. The two hire a referee to offer a legally binding judgment in a dispute. What form of ADR is this?


A) Private trial
B) Summary jury trail
C) Negotiated settlement
D) Mediation
E) Arbitration

F) B) and D)
G) A) and D)

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Currently there are only a few countries belonging to the United Nations Convention on the Recognition of Enforcement of Foreign Arbitral Awards.

A) True
B) False

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Med-arb is which type of dispute resolution process?


A) A process in which the parties agree to start out in mediation and, if the mediation is unsuccessful on one or more points, to move on to arbitration.
B) A process in which the parties agree to start out in arbitration and, if the arbitration is unsuccessful on one or more points, move on to court-annexed ADR.
C) A process in which the parties agree to start in mediation and move to litigation if the mediation is unsuccessful.
D) A process in which the parties agree to start in arbitration and move to litigation if the mediation is unsuccessful.
E) A special type of blended mediation and arbitration applicable only in the medical malpractice arena.

F) B) and C)
G) A) and C)

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