1. A business to business negotiation is potentially unbalanced when one party has a much more powerful bargaining position than the other (True/False)

2. Parties that have contractually agreed by contract to be subject to binding arbitration give up their constitutional right to bring their complaint to court (True/False)

3. Parties with unequal bargaining power often form a mentor-mentee relationship during negotiations, where the most powerful party teaches the least power party how to negotiate, but never takes advantage of the power differential (True/False)

4. The Federal Arbitration Act is a federal statute that grants authority to state courts to hear disputes arising under contracts that contain mandatory arbitration clauses (True/False)

5. Since contract law is state law, the federal government has declined to create policy or statutory law relating to alternative dispute resolution (True/False)

6. Benefits of negotiation as a method of alternative dispute resolution include:

A. no set rules.

B. potential for speedy resolution.

C. freedom to parties to bargain unethically.

D. involvement of a neutral party.

E. guaranteed resolution of conflict.

7. Which of the following statements is true of mediation?

A. It is more formal than negotiation but less formal than arbitration or litigation.

B. It involves more costs when compared to litigation.

C. If an agreement is reached, the mediation itself is usually binding.

D. The mediator renders a verdict in favor of one side or the other.

E. Regardless of the fact of disputants' reluctance to participate in the mediation process, the mediation will work.

8. In which of the following scenarios is mandatory arbitration considered fair?

A. Business to management

B. Business to employee

C. Business to consumer

D. Business to union

E. Business to business

9. Which of the following is a drawback of private judging?

A. The judge who oversees the process is generally not very experienced in such matters as evidence and decision rendering.

B. In states where statutes permit hiring a judge for trials, the parties' ability to appeal is seldom preserved.

C. The hired judge presides over a private trial that is truncated by limits on abbreviated rules of procedure, as is the case with arbitration

D. The enforceability of judgments rendered is sometimes questionable.

E. The parties who pay for this service will have to wait to have their cases heard in the public court.

10. Which of the following statements about business-to-business (B2B) arbitrations is true?

A. Issues of fairness often arise in B2B dispute situations.

B. Arbitration is unfair to businesses in B2B disputes.

C. Businesses fare better in litigation than in arbitration.

D. In B2B disputes, the subjects of disputes are commercial issues, which may not implicate deeper social and ethical questions.

E. The U.S. Supreme Court has held that in B2B contexts, unequal bargaining power alone is not a sufficient reason to hold that arbitration agreements are unenforceable.

11. A negotiation concept used by negotiators to define the worst alternative outcomes prior to entering a negotiation is known as:

A. WATNA.

B. BATNA.

C. bargaining zone.

D. reservation point.

E. walk-away point.

12. The only form of dispute resolution in which mandatory participation is NOT possible is:

A. Negotiation

B. Arbitration

C. Mediation

D. Litigation

E. Bargaining

13. An in-house policy in which company managers allow employees to bring grievances directly to them to resolve any potential disputes immediately is a(n):

A. ethics hotline policy.

B. outside counsel policy.

C. open-door policy.

D. med-arb policy.

E. methodical policy.

14. One of the benefits of mediation include:

A. the uniform set of rules to be followed.

B. the freedom to parties to bargain unethically.

C. the guaranteed resolution of conflict.

D. the binding nature of mediation agreement.

E. the relative expediency of reaching a resolution.

15. In business, which of the following methods of alternative dispute resolution is more often used in disputes between employers and employees about topics such as workplace conditions, wrongful discharge, or advancement grievances? A. Arbitration

B. Minitrials

C. Negotiation

D. Mediation

E. Collaborative goal-oriented processes

16. In an in-house business dispute resolution, mediation is often the method of alternative dispute resolution for: A. advancement grievances.

B. medical malpractice litigation.

C. healthcare disputes.

D. business to business disputes.

E. business to consumer disputes.

17. This Act entails parties to engage in arbitration when those parties have entered into legally binding contracts with a mandatory arbitration clause, provided the subject of those contracts involves commerce.

A. Title VII

B. The Lanham Act

C. The Arbitration Fairness Act

D. The Uniform Arbitration Act

E. The Federal Arbitration Act

18. Which of the following pieces of legislation make it easier for a domestic company to seek dispute resolution with foreign companies?

A. FAA

B. Supremacy Clause

C. New York Convention

D. Commerce Clause

E. Uniform Arbitration Act

19. Which of the following is a major benefit of an ethics hotline?

A. It allows company employees to go directly to any level of management to file a complaint.

B. It is a process in which active or retired judges may be hired for private trials.

C. The parties who can afford to pay for this service have a substantial benefit in not having to wait to have their cases heard in the public court.

D. Reporting parties generally, but not always, remain anonymous.

E. It allows parties to measure the strengths/weaknesses of their cases prior to engaging in litigation, which presumably saves both time and money.

20. The factor that differentiates med-arb from mediation and arbitration is that med-arb:

A. enables parties to know that their dispute will be resolved.

B. always produces a satisfactory outcome.

C. allows parties to walk away if their interests are not served.

D. does not vest authority to a third party to decide the outcome of the dispute.

E. ensures that parties work to form a mutually acceptable agreement.

21. A statute adopted in whole or in part by some states, which seeks to create consistency in arbitration proceedings between states is the:

A. Uniform Arbitration Act.

B. Variable Arbitration Act.

C. Binding Arbitration Act.

D. Nonbinding Arbitration Act.

E. Revised Binding Arbitration Act.

22. ADR is an acronym for:

A. administrative dispute rule.

B. alternative dispute resolution.

C. alternative docket review.

D. administrative dispute review.

E. alternative dispute rule.

23. Which of the following is not an example of unequal bargaining power?

A. B2B in which one business is much larger than the other,

B. B2B in which one business has a legal monopoly in the form of a patent on their product,

C. B2C,

D. Employer to employee.

E. B2B in which both businesses are the same size.

24. A statute that requires parties that have entered into contracts with mandatory arbitration clauses to submit to arbitration to resolve disputes arising under such contracts if it involves commerce is the:

A. Arbitration Fairness Act.

B. Federal Administration Act.

C. Federal Arbitration Act.

D. Uniform Arbitration Act.

E. State Arbitration Act.

25. In the context of arbitration, the process by which a court converts an arbitration award to a judgment is called:

A. a binding arbitration.

B. a nonbinding arbitration.

C. private judging.

D. a confirmation.

E. standing.

26. The _____ is a federal statute that the U.S. Supreme Court interpreted as a national policy favoring arbitration in Southland Corp. v. Keating.

27. _____ is an arbitrator's decision rendered after hearing the cases presented by the parties to an arbitration.

28. An _____ presides over arbitration proceedings.

29. Mediators act as a _____ for the parties, seeking to facilitate an agreement.

30. The Better Business Bureau trains its own arbitrators to hear common complaints between businesses and _____.