BUS 218 Ch 4 DDA Exam Questions With Correct Answers

Which of the following is true regarding the use of binding arbitration clauses in insurance contracts? - Answer In 14 states, the inclusion of binding arbitration clauses in insurance contracts is prohibited. Which of the following is true regarding negotiation as a form of ADR? - Answer Both problem-solving negotiation and adversarial negotiation are recognized approaches to negotiation. Which of the following is true of legal precedent as it relates to the law in general and to the law governing arbitration agreements? - Answer Like the law in general, the law governing arbitration agreements is not a fixed set of rules or precedents Victor signs an arbitration agreement providing that he will arbitrate any disputes with his employer, Business Corporation Victor believes that Business Corporation has discriminated against him in violation of the Americans with Disabilities Act. The EEOC also investigated the situation and brought an action against Business Corporation alleging that Business Corporation discriminated against Victor in violation of the Americans with Disabilities Act. Regarding the action brought by the EEOC, what is the effect of the arbitration clause? - Answer The arbitration clause is not binding on the EEOC. What was the U.S. Supreme Court's holding in Nitro-Lift Technologies LLC v. Howard? - Answer Even when an underlying contract that contains a binding arbitration clause violates a public policy of the state in which the contract is being enforced, the federal policy favoring arbitration takes precedence over state public policies. Which of the following is a contract provision that mandates that all disputes arising under the contract must be settled by arbitration? - Answer A binding arbitration clause In which of the following situations would a court most likely strike down an arbitration clause as unconscionable? - Answer An employment contract Several merchants signed a binding arbitration agreement with the American Express Company. The arbitration agreement included a clause prohibiting class action arbitration. Later, after a serious dispute arose involving a federal statute, the merchants sought class action arbitration against American Express Company, arguing that it would be too expensive to pursue the claims individually. Assuming the Federal Arbitration Act applies, how should a court rule on the issue? - Answer The court should uphold the agreement prohibiting class action arbitration. Which of the following is a way for parties to secure arbitration if their original contract does not contain a binding arbitration clause? - Answer A submission agreement