BUL 4421 - CHAPTER 4 EXAM
QUESTIONS AND ANSWERS
Alternative Dispute Resolution - Correct Answers -The resolution of legal disputes
through methods other than litigation, such as: negotiation, mediation, arbitration,
summary jury trials, mini trials, neutral case evaluations, and private trials.
Organizations often use this to resolve disputes involving: contracts, insurance, labor,
the environment, securities, technology, and international trade.
Why might a business prefer to resolve a dispute through Alternative Dispute Resolution
(ADR) rather than litigation? - Correct Answers -1. ADR methods are generally faster
and cheaper than litigation.
2. A business may wish to avoid the uncertainty associated with a jury decision.
3. A business may wish to avoid setting a precedent through a court decision. More
confidential nature.
4. Many forms of ADR are less adversarial than litigation, the parties are able to
preserve a business relationship.
Negotiation - Correct Answers -A bargaining process in which disputing parties interact
informally, either with or without lawyers, to attempt to resolve their dispute. Third party
not involved.
Adversarial negotiation - Correct Answers -Each party seeks to maximize its own gain
a provision in a contract that mandates that all disputes arising under the contract must
be settled by arbitration.
Submission agreement - Correct Answers -a contract providing that a specific dispute
will be resolved through arbitration.
Problem-solving negotiation - Correct Answers -Parties seek joint gain. To reach a
successful settlement, each part must give up something in exchange for getting
something from the other side.
Mediation - Correct Answers -the disputing parties select a neutral party to help facilitate
communication and suggest ways for the parties to solve their dispute.
Advantages of mediation: - Correct Answers --Helps disputing parties preserve their
relationships
-Potential for creative solutions
QUESTIONS AND ANSWERS
Alternative Dispute Resolution - Correct Answers -The resolution of legal disputes
through methods other than litigation, such as: negotiation, mediation, arbitration,
summary jury trials, mini trials, neutral case evaluations, and private trials.
Organizations often use this to resolve disputes involving: contracts, insurance, labor,
the environment, securities, technology, and international trade.
Why might a business prefer to resolve a dispute through Alternative Dispute Resolution
(ADR) rather than litigation? - Correct Answers -1. ADR methods are generally faster
and cheaper than litigation.
2. A business may wish to avoid the uncertainty associated with a jury decision.
3. A business may wish to avoid setting a precedent through a court decision. More
confidential nature.
4. Many forms of ADR are less adversarial than litigation, the parties are able to
preserve a business relationship.
Negotiation - Correct Answers -A bargaining process in which disputing parties interact
informally, either with or without lawyers, to attempt to resolve their dispute. Third party
not involved.
Adversarial negotiation - Correct Answers -Each party seeks to maximize its own gain
a provision in a contract that mandates that all disputes arising under the contract must
be settled by arbitration.
Submission agreement - Correct Answers -a contract providing that a specific dispute
will be resolved through arbitration.
Problem-solving negotiation - Correct Answers -Parties seek joint gain. To reach a
successful settlement, each part must give up something in exchange for getting
something from the other side.
Mediation - Correct Answers -the disputing parties select a neutral party to help facilitate
communication and suggest ways for the parties to solve their dispute.
Advantages of mediation: - Correct Answers --Helps disputing parties preserve their
relationships
-Potential for creative solutions
