I. On April 1, Mike, a rap star, contacted Sam, for the purpose of leasing Sam's house to be used as a recording studio. Sam showed Mike the house. Statement #1: Mike told Sam that he needed the house for a recording studio. Statement # 2: Sam told Mike that the electrical system was adequate to support a recording studio. Statement #3: Mike said that he would lease the house for six months on June 1 for $150,000. Statement #4: Sam said $250,000. Statement #5: Mike said $200,000. Statement #6: Sam said OK. ANSWER QUESTIONS 31 THRU 77 BASED UPON THE FOLLOWING FACTS II. On April 1, Owner made a contract with a contractor, an electrical contractor, to do electrical work on Owner's hotel for $1 million. A clause in the contract stated that for each day that the work was not completed, Contractor would be liable for $10,000.00 per day. The contract provided that the work be done by June 1. QUESTION 71 Arbitration hearings are conducted by the American Arbitration Association. True False QUESTION 72 The arbitrator is an expert. True False QUESTION 73 At arbitration, the arbitrator must apply the law. True False QUESTION 74 Fraud or Prejudiced of the arbitrator are grounds for appeal of an arbitrator's decision. True False QUESTION 75 After arbitration, the parties are free to litigate. True False