Test Bank For The Legal Environment of Business Text and Cases Ethical Regulatory Global, and Corporate Issues 8th Edition by Frank B. Cross

Description

Test Bank For The Legal Environment of Business Text and Cases Ethical Regulatory Global, and Corporate Issues 8th Edition by Frank B. Cross

Chapter 3 Alternative and Online

Dispute Resolution

	N.B.:  TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the Test Bank. = A question included in the previous edition of the Test Bank.

TRUE/FALSE QUESTIONS

A1. Pretrial mediation is never mandatory.

answer:FPAGE:57TYPE:N

NAT: AACSB ReflectiveAICPA Legal

A2. All courts require arbitration before a case goes to trial.

ANSWER:FPAGE:57TYPE:N

NAT: AACSB ReflectiveAICPA Legal

A3. Alternative dispute resolution methods are generally less expensive and time con­suming than actual litigation.

answer:tPAGE:58TYPE:=

NAT: AACSB ReflectiveAICPA Critical Thinking

A4. Assisted negotiation describes proceedings for minors and other parties who lack contractual “capacity.”

answer:FPAGE:58TYPE:=

NAT: AACSB AnalyticAICPA Legal

A5. Alternative dispute resolution refers to any method for resolving a dispute outside the court system.

answer:TPAGE:58TYPE:N

NAT: AACSB ReflectiveAICPA Critical Thinking

A6. Negotiation involves the parties to a dispute, with or without their attorneys.

answer:TPAGE:58TYPE:N

NAT: AACSB ReflectiveAICPA Critical Thinking

A7. In early neutral case evaluation, a third party’s evaluation of each party’s strengths and weaknesses forms the basis for negotiating a settlement.

ANSWER:tPAGE:58TYPE:=

NAT: AACSB ReflectiveAICPA Critical Thinking

A8. An arbitrator can render only a legally binding decision.

answer:fPAGE:59TYPE:+

NAT: AACSB AnalyticAICPA Legal

A9. The goal of mediation is to work out a resolution that benefits both sides.

answer:TPAGE:59TYPE:=

NAT: AACSB AnalyticAICPA Legal

A10. In mediation, a court assigns the mediator.

ANSWER:FPAGE:59TYPE:+

NAT: AACSB AnalyticAICPA Legal

A11. The federal government enforces agreements to arbitrate disputes between private parties.

answer:TPAGE:59TYPE:=

NAT: AACSB AnalyticAICPA Legal

A12. Virtually any dispute can be the subject of arbitration.

answer:TPAGE:59TYPE:N

NAT: AACSB AnalyticAICPA Legal

A13. On appeal of an arbitrator’s award, a court will look at the merits of the underlying dispute.

answer:fPAGE:68TYPE:N

NAT: AACSB AnalyticAICPA Legal

A14. A court’s scope of review on the appeal of an arbitrator’s award may be restricted.

ANSWER:TPAGE:68TYPE:+

NAT: AACSB AnalyticAICPA Legal

A15. An arbitrator’s error in judgment is sufficient to provide a basis for overturning an award.

answer:fPAGE:68TYPE:N

NAT: AACSB AnalyticAICPA Legal

A16. An arbitrator’s award may be set aside if it was the result of corruption or fraud.

answer:tPAGE:68TYPE:N

NAT: AACSB AnalyticAICPA Legal

A17. Parties can choose a particular state law to govern their arbitration agreement.

ANSWER:TPAGE:69TYPE:N

NAT: AACSB ReflectiveAICPA Critical Thinking

A18. The award in court-annexed arbitration is always binding on the parties.

answer:fPAGE:70TYPE:N

NAT: AACSB ReflectiveAICPA Critical Thinking

A19. Most online dispute resolution services apply general, universal legal principles to resolve disputes.

ANSWER:TPAGE:72TYPE:=

NAT: AACSB TechnologyAICPA Leveraging Technology

A20. A forum-selection clause in a contract designates which nation’s law will be applied to any dispute.

ANSWER:FPAGE:72TYPE:N

NAT: AACSB AnalyticAICPA Legal

multiple choice questions

A1. Olivia files a suit against Parker. 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.

ANSWER:BPAGE:58TYPE:=

NAT: AACSB ReflectiveAICPA Legal

A2. Shelly and Tom disagree over the amount of money due under their con­tract. To avoid involving any third party in a resolution of the dispute, Shelly and Tom might prefer to use the alternative dispute resolution method of 

a.arbitration.

b.litigation.

c.mediation.

d.negotiation.

answer:DPAGE:58TYPE:=

NAT: AACSB ReflectiveAICPA Critical Thinking

A3. Ivy files a suit against José. Before going to trial, the parties meet, and each party’s attorney argues the party’s case before the other party. If they fail to reach an agreement, a third party renders an opinion as to how a court would likely decide the dispute. This is

a.a mini-trial.

b.a summary jury trial.

c.early neutral case evaluation.

d.not a legitimate form of dispute resolution.

answer:APAGE:58TYPE:+

NAT: AACSB ReflectiveAICPA Legal

Fact Pattern 3-A1 (Questions A4-A6  apply)

Organico Café, Inc., and Pleasant Valley Farm Corporation dispute a term in their contract.

A4. Refer to Fact Pattern 3-A1. The least expensive method to resolve the dis­pute between Organico and Pleasant Valley 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.

answer:DPAGE:58 TYPE:=

NAT: AACSB ReflectiveAICPA Risk Analysis

A5. Refer to Fact Pattern 3-A1. If Organico and Pleasant Valley have a long-standing business relationship that they would like to continue, a preferred method of set­tling 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.

answer:CPAGE:59 TYPE:=

NAT: AACSB ReflectiveAICPA Risk Analysis

A6. Refer to Fact Pattern 3-A1. Resolving the dispute between Organico and Pleasant Valley by having a neutral third party render a binding decision is one of the ad­vantages of 

a.arbitration.

b.facilitation.

c.negotiation.

d.mediation.

answer:APAGE:59TYPE:+