BUL 4421 - CHAPTER 4 QUESTIONS
AND CORRECT ANSWERS
Negotiation ✅✅CORRECT ANSW-A bargaining process in which disputing parties interact
informally, either with or without lawyers, to attempt to resolve their dispute.
A neutral third party, such as a judge or jury, is not involved.
Adversarial negotiation ✅✅CORRECT ANSW-A party can enter negotiations with one of two
approaches: adversarial or problem solving.
Each party seeks to maximize its own gain
Problem-solving negotiation ✅✅CORRECT ANSW-The parties seek joint gain.
To reach a successful settlement, each part must give up something in exchange for getting
something from the other side.
Alternative Dispute Resolution ✅✅CORRECT ANSW-The resolution of legal disputes through
methods other than litigation, such as negotiation, mediation, arbitration, summary jury trials,
minitrials, neutral case evaluations, and private trials.
Organizations often use ADR 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 ANSW-First, ADR methods are generally faster and
cheaper than litigation. Accordingly, the National Arbitration Forum, the average time from filing a
complaint to receiving judgment through litigation is 25 months.
Mediation ✅✅CORRECT ANSW-An extension of negotiation is mediation.
, 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 ANSW--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: ✅✅CORRECT ANSW--informal process improperly creates an image
of
equality between the parties.
-We improperly assume that 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.
Arbitration ✅✅CORRECT ANSW-One of the most frequently used method of dispute resolution.
It's the resolution of a dispute by a neutral third party outside the judicial setting.
It is often a voluntary process in that parties typically have a contractual agreement to arbitrate any
disputes.
Arbitration Hearing ✅✅CORRECT ANSW-Quite similar to a trial. Both parties present their case to
a neutral third party; they may represent themselves or use legal counsel.
However, arbitration is different in several ways:
AND CORRECT ANSWERS
Negotiation ✅✅CORRECT ANSW-A bargaining process in which disputing parties interact
informally, either with or without lawyers, to attempt to resolve their dispute.
A neutral third party, such as a judge or jury, is not involved.
Adversarial negotiation ✅✅CORRECT ANSW-A party can enter negotiations with one of two
approaches: adversarial or problem solving.
Each party seeks to maximize its own gain
Problem-solving negotiation ✅✅CORRECT ANSW-The parties seek joint gain.
To reach a successful settlement, each part must give up something in exchange for getting
something from the other side.
Alternative Dispute Resolution ✅✅CORRECT ANSW-The resolution of legal disputes through
methods other than litigation, such as negotiation, mediation, arbitration, summary jury trials,
minitrials, neutral case evaluations, and private trials.
Organizations often use ADR 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 ANSW-First, ADR methods are generally faster and
cheaper than litigation. Accordingly, the National Arbitration Forum, the average time from filing a
complaint to receiving judgment through litigation is 25 months.
Mediation ✅✅CORRECT ANSW-An extension of negotiation is mediation.
, 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 ANSW--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: ✅✅CORRECT ANSW--informal process improperly creates an image
of
equality between the parties.
-We improperly assume that 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.
Arbitration ✅✅CORRECT ANSW-One of the most frequently used method of dispute resolution.
It's the resolution of a dispute by a neutral third party outside the judicial setting.
It is often a voluntary process in that parties typically have a contractual agreement to arbitrate any
disputes.
Arbitration Hearing ✅✅CORRECT ANSW-Quite similar to a trial. Both parties present their case to
a neutral third party; they may represent themselves or use legal counsel.
However, arbitration is different in several ways:
