Week 9: Mediation, Arbitration & Third
Parties (2026–2027) Comprehensive Test
Bank –Questions with Detailed Rationales
SECTION 1: ALTERNATIVE DISPUTE
RESOLUTION (ADR) FUNDAMENTALS
(Questions 1–30)
1. Alternative Dispute Resolution (ADR)
refers to:
A) Resolving disputes through traditional
litigation
B) Methods of resolving disputes outside of
traditional litigation
C) Appealing a court decision
D) Filing a lawsuit in federal court
1
,Answer: B — ADR encompasses methods of
resolving disputes outside the courtroom.
2. Which of the following is NOT a primary
goal of ADR?
A) Time and cost savings
B) Privacy
C) Guaranteed favorable outcome for the
plaintiff
D) Preservation of relationships
Answer: C — ADR cannot guarantee a
favorable outcome; it aims for fair resolution.
3. Why do courts often promote ADR?
A) To reduce caseloads and encourage
settlement
B) To eliminate the need for judges
2
,C) To increase litigation costs
D) To make all disputes public
Answer: A — Courts promote ADR to reduce
caseloads and encourage efficient settlement.
4. Which of the following is an advantage of
ADR over litigation?
A) Public proceedings
B) Confidentiality
C) Guaranteed appeal rights
D) Formal discovery process
Answer: B — ADR proceedings are typically
confidential.
5. What is the primary benefit of preserving
relationships in ADR?
A) It ensures one party wins
3
, B) It allows parties to maintain ongoing
business or personal relationships
C) It eliminates all conflicts
D) It guarantees a settlement
Answer: B — ADR, especially mediation,
helps parties preserve ongoing relationships.
6. Arbitration clauses in contracts are:
A) Generally unenforceable
B) Strongly favored and typically enforced by
federal courts
C) Only enforceable in state courts
D) Illegal in most jurisdictions
Answer: B — Federal courts strongly favor
and enforce arbitration clauses.
4
Parties (2026–2027) Comprehensive Test
Bank –Questions with Detailed Rationales
SECTION 1: ALTERNATIVE DISPUTE
RESOLUTION (ADR) FUNDAMENTALS
(Questions 1–30)
1. Alternative Dispute Resolution (ADR)
refers to:
A) Resolving disputes through traditional
litigation
B) Methods of resolving disputes outside of
traditional litigation
C) Appealing a court decision
D) Filing a lawsuit in federal court
1
,Answer: B — ADR encompasses methods of
resolving disputes outside the courtroom.
2. Which of the following is NOT a primary
goal of ADR?
A) Time and cost savings
B) Privacy
C) Guaranteed favorable outcome for the
plaintiff
D) Preservation of relationships
Answer: C — ADR cannot guarantee a
favorable outcome; it aims for fair resolution.
3. Why do courts often promote ADR?
A) To reduce caseloads and encourage
settlement
B) To eliminate the need for judges
2
,C) To increase litigation costs
D) To make all disputes public
Answer: A — Courts promote ADR to reduce
caseloads and encourage efficient settlement.
4. Which of the following is an advantage of
ADR over litigation?
A) Public proceedings
B) Confidentiality
C) Guaranteed appeal rights
D) Formal discovery process
Answer: B — ADR proceedings are typically
confidential.
5. What is the primary benefit of preserving
relationships in ADR?
A) It ensures one party wins
3
, B) It allows parties to maintain ongoing
business or personal relationships
C) It eliminates all conflicts
D) It guarantees a settlement
Answer: B — ADR, especially mediation,
helps parties preserve ongoing relationships.
6. Arbitration clauses in contracts are:
A) Generally unenforceable
B) Strongly favored and typically enforced by
federal courts
C) Only enforceable in state courts
D) Illegal in most jurisdictions
Answer: B — Federal courts strongly favor
and enforce arbitration clauses.
4
