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Exam 4: Alternative Dispute Resolution

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Question 41

Multiple Choice

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Japan uses what types of ADR techniques?

A) Compromise, conciliation, and arbitration
B) Conciliation and arbitration, but not compromise
C) Arbitration and mediation only
D) Compromise, conciliation, mediation, but not arbitration
E) ADR is now allowed under Japanese culture

F) B) and D)
G) D) and E)

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Question 42

True/False

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Negotiation is a bargaining process in which disputing parties interact informally, but only with lawyers, to attempt to resolve their dispute.

A) True
B) False

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Question 43

Multiple Choice

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[Pet Pics] Ari went to work as an independent contracting photographer for Wild Pet Pics, a company specializing in photographing exotic pets, such as monkeys and snakes, with their owners. The company's home office was in California, but Ari worked in Florida. Before he started work, Ari signed an agreement to arbitrate any dispute he had with the company. The arbitration agreement provided that in the event of a dispute, Ari would completely cover the cost of the arbitration; that he could only receive up to $150 in damages regardless of his claims, punitive or otherwise; and that any arbitration would be conducted at the company's home office. The agreement also provided that the arbitrator was not bound to strictly follow the official court rules of evidence. Ari signed the agreement because he really needed a job and liked animals. His only previous animal photography experience, however, had been with cats and dogs. Ari's contract provided that he would be paid $100 per shoot and that the company would take steps to ensure his safety. One day he was called in to photograph a skunk and its owner. He was told by the receptionist at Wild Pet Pics that the skunk had been altered so that it could not spray. Ari felt safe. Unfortunately, the skunk had not been altered. Just as he was starting to shoot, the skunk became upset. It ran towards Ari, sprayed Ari, and in the resulting commotion, Ari's expensive camera was knocked over and broken. Plus, Ari's clothes were ruined and he stank for days. Ari wants to sue Wild Pet Pics for $5,000 to cover the cost of his camera, his clothing, and his general smelliness for several days. Ari says that he cannot afford to pay for the arbitration. -Is the arbitration agreement that Ari signed void on the grounds that the federal rules of evidence would not have to be followed by the arbitrator in the case?

Which of the following is accurate regarding the speed and cost of ADR as compared to litigation?

Which of the following describes the role of arbitration and mediation in e-commerce cases?

How is arbitration preferable to litigation, and what are criticisms of arbitration as compared to litigation?

Which of the following is true regarding strikes under the National Labor Relations Act?

[Jade Shoes] Coleman owns a sporting goods store and has purchased top-quality, brand-name athletic shoes from Jade's Shoe Distribution for many years, but they have no written contract in place. Last month, Coleman learned that the latest shipment from Jade's are not authentic, brand-name shoes but instead a knock-off brand that costs a fraction of the price Coleman pays. Coleman cannot sell these shoes because his customers would know the difference, and Coleman demanded Jade refund him. Jade sent Coleman a written request for arbitration within thirty days. In response, Coleman called Jade, threatening to file a lawsuit against Jade and exposing her company as a fraud. Jade laughs, saying Coleman is required to arbitrate their dispute within thirty days. -If Coleman decides to arbitrate, which of the following would most likely be false?

Awards obtained under the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards:

[Jade Shoes] Coleman owns a sporting goods store and has purchased top-quality, brand-name athletic shoes from Jade's Shoe Distribution for many years, but they have no written contract in place. Last month, Coleman learned that the latest shipment from Jade's are not authentic, brand-name shoes but instead a knock-off brand that costs a fraction of the price Coleman pays. Coleman cannot sell these shoes because his customers would know the difference, and Coleman demanded Jade refund him. Jade sent Coleman a written request for arbitration within thirty days. In response, Coleman called Jade, threatening to file a lawsuit against Jade and exposing her company as a fraud. Jade laughs, saying Coleman is required to arbitrate their dispute within thirty days. -Which of the following is true for both arbitrations and trials?

Negotiation in which each side seeks to maximize its own gain is called problem-solving negotiation.

The 1998 ________ states that all federal district court litigants must consider the use of ADR at some stage of the litigation.

Many private firms have started to offer private jury trials and hire jurors who are often better educated than the typical juror. Many of these jurors have had several experiences serving on multiple private juries. Which of these is the biggest criticism of a private trial?

There are two types of negotiations that parties can enter into, they are:

Sofia is considering Daniel as an independent contractor to do clean up and maintenance for her building, which has several tenants. She is aware that Daniel has sued some previous building owners. He does a good job, however, and she would like to hire him. Daniel has agreed to sign an arbitration agreement. What should Sofia do to have a binding agreement that will be enforced?

[Salsa Sensations] Sofia, co-owner of a popular dance club called Salsa Sensations, discovered her co-owner and best friend, Renata, has been secretly pocketing cash receipts. Salsa Sensations' business is booming. Sofia meets Gordon, an attorney. Gordon advises Sofia that she should engage in ADR instead of filing a lawsuit against Renata because it would be faster and cheaper than litigation. -Gordon advises that they seek mediation, and, if mediation is unsuccessful, then they should request arbitration or file a lawsuit. However, Sofia is concerned that any statements she makes at mediation could be used against her. What should Gordon tell her?

[Salsa Sensations] Sofia, co-owner of a popular dance club called Salsa Sensations, discovered her co-owner and best friend, Renata, has been secretly pocketing cash receipts. Salsa Sensations' business is booming. Sofia meets Gordon, an attorney. Gordon advises Sofia that she should engage in ADR instead of filing a lawsuit against Renata because it would be faster and cheaper than litigation. -If Sofia wants to engage in ADR without the cost of paying a neutral third party, which type of ADR should Gordon suggest?

Several merchants signed a binding arbitration agreement with American Express Co. The arbitration agreement included a clause prohibiting class action arbitration. Later, after a serious dispute arose involving a federal statute, the merchants wanted to pursue class action arbitration against American Express 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?

[Jade Shoes] Coleman owns a sporting goods store and has purchased top-quality, brand-name athletic shoes from Jade's Shoe Distribution for many years, but they have no written contract in place. Last month, Coleman learned that the latest shipment from Jade's are not authentic, brand-name shoes but instead a knock-off brand that costs a fraction of the price Coleman pays. Coleman cannot sell these shoes because his customers would know the difference, and Coleman demanded Jade refund him. Jade sent Coleman a written request for arbitration within thirty days. In response, Coleman called Jade, threatening to file a lawsuit against Jade and exposing her company as a fraud. Jade laughs, saying Coleman is required to arbitrate their dispute within thirty days. -If Coleman had signed a submission agreement, but subsequently decides to file a lawsuit against Jade, would Coleman still be required to arbitrate?

[Pet Pics] Ari went to work as an independent contracting photographer for Wild Pet Pics, a company specializing in photographing exotic pets, such as monkeys and snakes, with their owners. The company's home office was in California, but Ari worked in Florida. Before he started work, Ari signed an agreement to arbitrate any dispute he had with the company. The arbitration agreement provided that in the event of a dispute, Ari would completely cover the cost of the arbitration; that he could only receive up to $150 in damages regardless of his claims, punitive or otherwise; and that any arbitration would be conducted at the company's home office. The agreement also provided that the arbitrator was not bound to strictly follow the official court rules of evidence. Ari signed the agreement because he really needed a job and liked animals. His only previous animal photography experience, however, had been with cats and dogs. Ari's contract provided that he would be paid $100 per shoot and that the company would take steps to ensure his safety. One day he was called in to photograph a skunk and its owner. He was told by the receptionist at Wild Pet Pics that the skunk had been altered so that it could not spray. Ari felt safe. Unfortunately, the skunk had not been altered. Just as he was starting to shoot, the skunk became upset. It ran towards Ari, sprayed Ari, and in the resulting commotion, Ari's expensive camera was knocked over and broken. Plus, Ari's clothes were ruined and he stank for days. Ari wants to sue Wild Pet Pics for $5,000 to cover the cost of his camera, his clothing, and his general smelliness for several days. Ari says that he cannot afford to pay for the arbitration. -What effect will the provision that the arbitration be conducted in the company's home state have on the agreement?