BUL 4421 - CHAPTER 4 QUESTIONS
AND ANSWERS (GRADED A+)
Alternative Dispute Resolution - ANSWER-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? - ANSWER-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 - ANSWER-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 - ANSWER-Each party seeks to maximize its own gain
Problem-solving negotiation - ANSWER-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 - ANSWER-the disputing parties select a neutral party to help facilitate
communication and suggest ways for the parties to solve their dispute.
Advantages of mediation: - ANSWER--Helps disputing parties preserve their
relationships
-Potential for creative solutions
-Parties to mediation have a high level of autonomy
-Less costly, less time-consuming, less complicated
Disadvantages of mediation: - ANSWER--informal process improperly creates an image
of equality between the parties.
-We improperly assume hat the resulting agreement between the parties is also equal.
-Some people may abuse the mediation process in an attempt to simply draw out the
dispute.
AND ANSWERS (GRADED A+)
Alternative Dispute Resolution - ANSWER-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? - ANSWER-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 - ANSWER-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 - ANSWER-Each party seeks to maximize its own gain
Problem-solving negotiation - ANSWER-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 - ANSWER-the disputing parties select a neutral party to help facilitate
communication and suggest ways for the parties to solve their dispute.
Advantages of mediation: - ANSWER--Helps disputing parties preserve their
relationships
-Potential for creative solutions
-Parties to mediation have a high level of autonomy
-Less costly, less time-consuming, less complicated
Disadvantages of mediation: - ANSWER--informal process improperly creates an image
of equality between the parties.
-We improperly assume hat the resulting agreement between the parties is also equal.
-Some people may abuse the mediation process in an attempt to simply draw out the
dispute.
