Chapter 04

CHAPTER 4MANAGING DISPUTES: ALTERNATIVE DISPUTE RESOLUTION
AND LITIGATION STRATEGIES

TRUE/FALSE
1. A lawsuit begins with the filing of a complaint or petition.
ANS: T
TOP: complaints
PTS: 1
NAT: AACSB: Analytic
2. Statutes of limitations are always four years.

ANS: F
TOP: time limits
PTS: 1
3. To be valid, a complaint must have every fact listed in it.

ANS: F
TOP: complaints
PTS: 1
4. A complaint must establish subject matter jurisdiction.

ANS: T
TOP: complaints
PTS: 1
5. Venue is the subject matter jurisdiction of a court.

ANS: F
TOP: venue
PTS: 1
6. Specific performance is an equitable remedy.

ANS: T
TOP: equity
PTS: 1
7. Injunctions are equitable remedies.

ANS: T
TOP: injunctions
PTS: 1
8. The American Institute of Architects has moved from mandatory mediation to mandatory arbitration in
its model contracts,
ANS: F
TOP: mediation
PTS: 1
9. The summons is the same document as the complaint.

ANS: F
TOP: summons
PTS: 1
10. The complaint and answer are both pleadings.
ANS: T
TOP: pleadings
PTS: 1
11. A default is entered when the defendant counterclaims.

ANS: F
TOP: default
PTS: 1
12. The plaintiff is the only party in a suit who can counterclaim.
ANS: F
PTS: 1
TOP: counterclaim
13. A motion for judgment on the pleadings is the same as a motion for summary judgment.
ANS: F
TOP: motions
PTS: 1
14. A motion to dismiss must be filed before an answer is filed.

ANS: F
TOP: motions
PTS: 1
15. A motion for summary judgment is appropriate only if there are no issues of fact.
ANS: T
TOP: motions
PTS: 1
16. Interrogatories must be answered in writing and under oath.

ANS: T
PTS: 1
TOP: interrogatories
17. A request for admission that is refused and later proved can carry a penalty of recovery of attorney's
fees.
ANS: T
TOP: admissions
PTS: 1
18. Depositions are generally taken in the courtroom.

ANS: F
TOP: depositions
PTS: 1
19. Work product is discoverable.

ANS: F
PTS: 1
TOP: work product
20. Every trial requires a jury.

ANS: F
TOP: juries
PTS: 1
21. Voir dire is the process of screening prospective jurors.

ANS: T
TOP: voir dire
PTS: 1
22. A peremptory challenge is a challenge for cause.

ANS: F
TOP: voir dire
PTS: 1
23. During the plaintiff's case, the defendant conducts direct examination.
ANS: F
TOP: direct
PTS: 1
24. A prima facie case is one that can survive a directed verdict.
ANS: T
PTS: 1
TOP: prima facie case
25. All hearsay is inadmissible as evidence.

ANS: F
TOP: hearsay
PTS: 1
26. Jury instructions explain to jurors how to elect a foreman.

ANS: F
TOP: juries
PTS: 1
27. A hung jury requires a retrial of the case.

ANS: F
TOP: juries
PTS: 1
28. If a judge grants a motion for a judgment NOV, the effect is a reversal of the jury verdict.
ANS: T
TOP: motions
PTS: 1
29. Arbitration proceedings have less stringent evidentiary standards than trials.
ANS: T
TOP: arbitration
PTS: 1
30. In mediation, the disputing parties use a third party as a go-between to facilitate negotiations.
ANS: T
TOP: mediation
PTS: 1
31. A mini-trial is a public method of dispute resolution.

ANS: F
PTS: 1
TOP: mini-trial
32. Early neutral evaluation is a means of alternative dispute resolution used prior to discovery.
ANS: T
TOP: ADR
PTS: 1
33. Rent-a-judge facilities are private operations.

ANS: T
TOP: ADR
PTS: 1
34. Summary jury trials offer the perspective of a jury with a shortened version of the case.
ANS: T
TOP: ADR
PTS: 1
35. The results of an arbitration hearing are generally binding.

ANS: T
TOP: arbitration
PTS: 1
36. The results of mediation are generally binding.

ANS: F
TOP: mediation
PTS: 1
37. In arbitration, the parties develop the proposed list of arbitrators.

ANS: F
TOP: arbitration
PTS: 1
38. For evidentiary purposes, accountants' work product and attorneys' work product are treated the same.
ANS: F
PTS: 1
TOP: work product
39. Interrogatories are given under oath.

ANS: T
PTS: 1
40. There is an absolute right to a jury trial in civil cases.

ANS: F
TOP: juries
PTS: 1
41. The effect of a counterclaim is to have the defendant also suing the plaintiff.
ANS: T
PTS: 1
TOP: counterclaim
42. In some states, unanimous jury verdicts are not required.
ANS: T
TOP: juries
PTS: 1
43. The remaining growth area for arbitration is through federal courts.
ANS: F
TOP: arbitration
PTS: 1
44. Rent-a-judge hearings are private hearings arranged by the parties to a dispute.
ANS: T
TOP: ADR
PTS: 1
45. Medarb is a combination of a trial and mediation.

ANS: F
TOP: medarb
PTS: 1
46. The results of a mini-trial are always binding.

ANS: T
TOP: mini-trial
PTS: 1
47. The parties select the arbitrator for arbitration.

ANS: F
TOP: arbitration
PTS: 1
48. The Federal Arbitration Act (FAA) permits mandatory arbitration in consumer contracts but has yet to
be tested in litigation.
ANS: F
TOP: arbitration
PTS: 1
49. Interrogatories are only given to the parties in a case.

ANS: T
PTS: 1
50. The International Chamber of Commerce (ICC) is a private court.

ANS: F
PTS: 1
TOP: international
51. The new discovery rules require lawyers and the parties to voluntarily disclose relevant information at
the beginning of the discovery process.
ANS: T
TOP: discovery
PTS: 1
52. The Arbitration Court of the International Chamber of Commerce handled over 800 arbitration
requests in 2009 and issued over 400 arbitration awards.
ANS: T
PTS: 1
TOP: international arbitration

53. Jury consultants are used before, during, and after trial.
ANS: T
TOP: juries
PTS: 1
54. There are constitutional and numerical limits on peremptory challenges.

ANS: T
TOP: juries
PTS: 1
55. Instructions for the jury are given by the lawyers in the case during their closing arguments.
ANS: F
TOP: juries
PTS: 1
56. A motion for a judgment NOV is heard by a court of appeals.

ANS: F
TOP: motions
PTS: 1
57. Under the new discovery rules, work product must also be turned over to the other parties in a case.
ANS: F
PTS: 1
TOP: work product
58. So long as a court has subject matter jurisdiction, there is no need for in personam jurisdiction.
ANS: F
TOP: jurisdiction
PTS: 1
59. In personam jurisdiction is not an issue when one of the parties is from another country.
ANS: F
TOP: jurisdiction
PTS: 1
60. E-mail cannot be obtained during discovery.

ANS: F
TOP: discovery
PTS: 1
61. A deposition can be used at trial.

ANS: T
TOP: depositions
PTS: 1
62. A summons is served on a defendant and a subpoena is served on a witness.

ANS: T
TOP: procedure
PTS: 1
63. A directed verdict can occur immediately after the pleadings are filed.
ANS: F
TOP: procedure
PTS: 1
64. Devices such as a Blackberry or an iPhone are exempt under the rules for business discovery in
litigation.
ANS: F
TOP: discovery
PTS: 1
65. Junk science can be excluded from evidence at trial.

ANS: T
TOP: evidence
PTS: 1
66. Arbitration is not allowed when federal statutory rights are involved.
ANS: F
TOP: ADR
PTS: 1
67. An arbitration clause that requires a consumer to travel to another state for the arbitration hearing is
void.
ANS: F
TOP: arbitration
PTS: 1
68. Lawyers prefer mediation over arbitration as a means of ADR.

ANS: T
TOP: arbitration
PTS: 1
69. The rules of the AAA require the parties to be represented by an attorney.
ANS: F
TOP: arbitration
PTS: 1
70. In general it is okay for jurors to perform internet research concerning the case they are involved in
during the case.
ANS: F
TOP: procedure
PTS: 1
71. In international disputes, it is likely that foreign companies will be required to come to the United
States to bring suit for issues involving the Internet and U.S. companies
ANS: T
TOP: jurisdiction
PTS: 1
72. Spoilation is the destruction of evidence that is needed in a case.

ANS: T
PTS: 1
TOP: trial steps | discovery
73. It is quite common for courts to overturn an arbitration award.
ANS: F
TOP: ADR
PTS: 1
74. Mandatory arbitration is unconstitutional.

ANS: F
TOP: ADR
PTS: 1
MULTIPLE CHOICE
1. Which of the following is the first document filed in a lawsuit?
a. complaint
b. answer
c. pleadings
d. none of the above
ANS: A
TOP: complaints
PTS: 1
2. Which of the following is not included in a complaint?

a. statement of subject matter jurisdiction
b. request for damages
c. statement of venue
d. a counterclaim
e. none of the above
ANS: D
TOP: complaints
PTS: 1
3. Which of the following is not a form of equitable relief?

a. injunction
b. money damages
c. specific performance
d. rescission of a contract
e. All of the above are forms of equitable relief.
ANS: B
TOP: remedies
PTS: 1
4. Which of the following accurately describes a summons?

a. initial document filed in a suit
b. served on the defendant
c. need not be served so long as it is filed
ANS: B
TOP: summons
PTS: 1
5. A counterclaim is:
a. made by a defendant.
b. part of the complaint.
c. part of the interrogatories.
ANS: A
PTS: 1
TOP: answers
6. A default results when:
a. the plaintiff fails to serve a summons.
b. the defendant fails to file an answer in a timely fashion.
c. a counterclaim is filed.
ANS: B
TOP: default
PTS: 1
7. This is the famous class action lawyer who is now in prison for attempted bribery of a federal judge.
a. Russell Crowe
b. Dickie Scruggs
c. Zachary Scruggs
d. Jeffrey Wigand
ANS: B
TOP: penalties
PTS: 1
8. A motion for summary judgment is:

a. granted only if there are no factual issues.
b. appropriate if there are no issues of law.
c. decided by a jury.
ANS: A
TOP: motions
PTS: 1
9. Which of the following is not a form of discovery?

a. interrogatories
b. requests for admissions
c. pretrial conference
d. depositions
e. All of the above are forms of discovery.
ANS: C
TOP: discovery
PTS: 1
10. Which of the following would not be discoverable in a contract suit requesting lost profits as damages?
a. income tax returns of the business
b. orders of merchandise
c. expense records
d. work product
ANS: D
TOP: discovery
PTS: 1
11. Which of the following is a true statement about depositions?

a. They are generally held in a courtroom.
b. They are not taken under oath.
c. They must be preceded by interrogatories.
ANS: D
TOP: discovery
PTS: 1
12. Peremptory challenges:

a. are challenges for cause.
b. are generally limited in each case.
c. require specific reasons for use.
d. require proof of bias or prejudice of the juror.
ANS: B
PTS: 1
TOP: jury selection
13. Once a plaintiff has established a prima facie case:

a. the case is won.
b. the case can survive a directed verdict motion by the defendant.
c. the defendant cannot present contradictory evidence.
d. a judgment NOV is granted.
ANS: B
PTS: 1
TOP: prima facie case
14. Jury instructions:

a. are not given in all cases.
b. explain the application of law to juries.
c. are developed unilaterally by the judge.
d. explain how a foreman is elected.
ANS: B
PTS: 1
TOP: jury instructions
15. A motion for judgment NOV:

a. is a motion for judgment notwithstanding the verdict.
b. can only be made by the plaintiff.
c. is made only before the verdict is returned.
ANS: A
TOP: motions
PTS: 1
16. Which of the following is not an advantage of arbitration?

a. always nonbinding
b. less complicated procedures
c. nonpublic
d. All of the above are advantages of arbitration.
ANS: A
TOP: ADR
PTS: 1
17. Mediation is:

a. the same as arbitration.
b. used frequently in international disputes.
c. regulated by the American Arbitration Association.
ANS: B
TOP: ADR
PTS: 1
18. Voir dire is:

a. the process for screening prospective jurors.
b. the same as venue.
c. used if peremptory challenges are planned.
d. the same as a judgment NOV.
ANS: A
PTS: 1
TOP: jury selection
19. A summons:
a. is served on the plaintiff.
b. can be served by an officer of the court or by private licensed firms.
c. need not be served if the complaint has been filed.
ANS: B
TOP: summons
PTS: 1
20. Interrogatories:
a. are served on nonparties only.
b. must be answered under oath.
c. must be used before a deposition can be scheduled.
ANS: B
TOP: discovery
PTS: 1
21. ______ is replacing ______ as the preferred method of business dispute resolution.
a. Litigation; arbitration
b. Arbitration; mediation
c. Mediation; arbitration
d. Litigation; mediation
ANS: C
TOP: arbitration
PTS: 1
22. A pretrial conference is:

a. a meeting between the parties.
b. a hearing for a motion for summary judgment.
c. held before discovery begins.
ANS: D
TOP: pretrial
PTS: 1
23. The party conducting cross-examination is:

a. the party who did not call the witness.
b. the party who called the witness.
c. involved in voir dire.
d. always the judge.
ANS: A
PTS: 1
TOP: cross-examination
24. The time limit for a defendant to file an answer is:

a. the statute of limitations.
b. two years for personal injury suits.
c. 20 to 30 days in most states.
d. four years for contract suits.
ANS: C
TOP: time limits
PTS: 1
25. Closing arguments are:

a. presented by the judge.
b. part of the jury instructions.
c. presented by the plaintiff's attorney only.
ANS: D
PTS: 1
TOP: closing arguments
26. A complaint filed in a lawsuit could not contain which of the following?
a. a claim for money damages
b. a claim for equitable remedies
c. a claim for an injunction
d. a counterclaim
ANS: D
TOP: complaints
PTS: 1
27. The ______ is the largest ADR provider in the country for commercial disputes.
a. National Arbitration Forum
b. American Arbitration Forum
c. American Arbitration Association
d. American Arbitration Forum
ANS: C
PTS: 1
TOP: ADR providers
28. A motion for judgment on the pleadings can be granted:

a. if the complaint does not state a cause of action.
b. if there are no factual issues.
c. any time during the course of the trial.
d. all of the above
ANS: A
TOP: motions
PTS: 1
29. A motion to dismiss can be granted:

a. any time throughout the case.
b. only after the plaintiff's case has been presented.
c. only after the defendant's case has been presented.
d. only if summary judgment is also appropriate.
ANS: A
TOP: motions
PTS: 1
30. Sam Echols was injured when he was struck in a crosswalk by a car driven by Ceila Jones. Echols'
lawyer suspects that Ms. Jones was not wearing her contact lenses at the time of the accident as she is
required to do by law. After Echols' lawyer files suit, how can she find out whether Ms. Jones was
wearing her contact lenses?
a. by subpoenaing Ms. Jones
b. by a request to produce
c. by a deposition of Ms. Jones
d. The information is privileged and nondiscoverable.
ANS: C
TOP: discovery
PTS: 1
31. Sam Wasterson is the CEO of Galant, Inc. Galant is being sued by Webtech, a competitor, for antitrust
violations. Webtech's CEO says that he met with Wasterson three times in 1993. He explains, "Check
his calendar. Check his secretary's logs!" The meetings are a critical part of the Webtech case.
Webtech's lawyers:
a. will not be able to obtain the calendar or logs because of the privilege.
b. will obtain the calendar and logs through mandatory discovery or a request for production.
c. will have to show the relevance of the logs and calendars before they can get them.
d. cannot obtain the calendar and logs because of privacy limitations.
ANS: B
TOP: discovery
PTS: 1
32. If privacy is an important requirement for resolution of a company's disputes, which of the following
methods would you recommend?
a. mediation
b. rent-a-judge
c. arbitration
d. All of the above are private and would serve the company's needs.
ANS: D
PTS: 1
TOP: dispute resolution
33. The purpose of the new mandatory discovery provisions is to:

a. remove the element of surprise from litigation.
b. make litigation more of a quest for the truth.
c. minimize discovery times and costs.
d. All of the above are reasons mandatory discovery was adopted.
ANS: D
TOP: discovery
PTS: 1
34. When is a motion for a judgment NOV granted?

a. after the plaintiff has presented its case
b. when the weight of the evidence is contrary to the jury's verdict
c. when the pleadings of the plaintiff are insufficient to state a cause of action
ANS: B
TOP: motions
PTS: 1
35. Hearsay:
a. is never admissible in court.
b. is unreliable evidence.
c. can be used on cross-examination.

ANS: D
TOP: trial
PTS: 1
36. Which of the following methods of arbitration allows the parties input on the decision-maker(s)?
a. peer review
b. arbitration
c. mediation
d. all of the above
ANS: D
TOP: ADR
PTS: 1
37. Which of the following cannot be obtained during discovery in a case?

a. e-mail from the defendant company's server
b. attorney's notes for the defendant company
c. medical records of an injured plaintiff
d. defendant company internal memos
e. All of the above can be obtained during discovery.
ANS: B
TOP: discovery
PTS: 1
38. Choose the answer that reflects the proper sequence of events in civil procedure:
a. complaint, subpoena, deposition, answer, interrogatories, summons
b. complaint, deposition, answer, counterclaim, affirmative defense
c. complaint, directed verdict, summary judgment, summons, answer
d. complaint, summons, answer, counterclaim, discovery
e. discovery, complaint, summons, answer, counterclaim
ANS: D
TOP: procedure
PTS: 1
39. Which of the following is a suggested policy on executive smartphone use?

a. A mandatory password requirement for smartphones.
b. A stated policy on deleting messages on smartphones.
c. Smartphone configuration and archiving policies.
d. All of the above.
ANS: D
TOP: discovery
PTS: 1
40. Which of the following methods of alternative dispute resolution involves a hearing?
a. arbitration
b. mediation
c. negotiated settlement
d. settlement conference
e. All of the above involve hearings.
ANS: A
TOP: ADR
PTS: 1
41. Spoilation is:

a. litigation over contaminated food.
b. destruction of evidence needed for litigation.

c. following stare decisis and dismissing a case.
ANS: B
TOP: discovery
PTS: 1
42. The best means for obtaining access to a defendant companys e-mail in litigation over an atmosphere
of harassment is:
a. deposition.
b. summons.
c. request for production.
ANS: C
TOP: discovery
PTS: 1
43. Jane has been dunned by her creditors for payment of her credit card bills. But I have disputes over
some of those charges, and I want to go to court under the Fair Credit Billing Act. One of her
creditors points out to Jane that there was an arbitration clause in the terms and conditions given to her
when she was given her credit card. Credit card rights are given by federal law. I dont have to go to
arbitration!
a. Jane is correct; federal credit laws prohibit arbitration.
b. Jane is incorrect; she can be required to go to arbitration.
c. Arbitration applies only to Truth-in-Lending Act issues.
ANS: B
TOP: arbitration
PTS: 1
44. Which of the following may not be included in the answer to a complaint?
a. admission
b. counterclaim
c. denial
d. all can be included
ANS: A
PTS: 1
TOP: filing lawsuit
45. Sanctions for discovery abuse:

a. are payments or a type of fine or penalty for not disclosing evidence.
b. are unconstitutional.
c. cannot include cash payments.
ANS: A
TOP: discovery
PTS: 1
46. Investment banker, Frank Quattrone, sent an e-mail around to his employees reminding them about
their e-mails and to clean up those files. The e-mail was sent when the SEC was investigating Mr.
Quattrones employer, Credit Suisse First Boston. The destruction of the e-mails:
a. could constitute spoilation.
b. could constitute obstruction of justice.
c. is fine if it is routine.
d. both a and b
ANS: D
TOP: discovery
PTS: 1
47. The standard for admitting expert testimony in a trial is:

a. the judge must find the expert is reliable.
b. the judge must fine that the experts testimony is relevant.
c. all expert testimony is admitted.
d. both a and b
ANS: D
TOP: evidence
PTS: 1
48. My E-Medicine, Inc. is a company that offers prescriptions over the Internet. The company has a
worldwide customer base. A company based in France has alleged that My E-Medicine is selling a
generic drug that violates the French company's patent. The company has filed suit against My EMedicine in France and has sought to use the U.S. Marshal in the United States to serve process for the
suit. Which of the following best describes the rights of My E-Medicine?
a. My E-Medicine can be required to go to France to defend the lawsuit because it sells its
products there.
b. My E-Medicine has violated the Computer Fraud and Abuse Act.
c. My E-Medicine can challenge the jurisdiction of the U.S. Marshals here in federal district
court.
d. My E-Medicine is not responsible for the patent infringement of another company.
ANS: C
TOP: jurisdiction
PTS: 1
49. When is a motion for a directed verdict properly made?

a. after the defendant has filed its answer
b. after summary judgment has been granted
c. after the plaintiff has presented its case
d. only at the appellate court level
ANS: C
PTS: 1
TOP: civil procedure
50. Amanda Reiss was injured at a wedding reception at a private home. Amanda tripped over a piece of
rebar that was sticking from the end of one portion of a sidewalk leading to the front door. Amandas
lawyer believes that the homeowners were aware of the rebar problem and that other guests to the
home had tripped over it but not been injured. How can Amandas lawyer get the information about the
homeowners knowledge?
a. he cannot because they are not required to talk with Amandas lawyers
b. he can depose the homeowners
c. he can depose others who have been guests
d. both b and c
ANS: D
TOP: discovery
PTS: 1
51. What are the sanctions for the failure to admit facts made through a request for admissions?
a. judgment is awarded against the party who failed to admit the facts later proven
b. the cost of proving the facts not admitted may be assessed against the party who failed to
admit those facts
c. the case is dismissed

ANS: B
PTS: 1
TOP: civil procedure
52. Jack Knighton is an employee of PRG Consulting. He has been called for jury duty. One of PRGs
clients is Renar Corporation. Renar is the defendant in the case for which Jack has been called for the
jury panel. The attorney for the plaintiff who is suing Renar:
a. could have Jack struck from the panel for cause.
b. cannot have Jack struck just because his company has the defendant as a client.
c. has no recourse because the jury is a wild card in litigation.
ANS: A
TOP: trial process
PTS: 1
53. Who conducts cross-examination when the defendant is presenting its case?
a. the defendant because the defendant always does cross-examination
b. the plaintiff
c. the judge because the burden of proof has shifted
ANS: B
TOP: trial process
PTS: 1
54. A prima face case:

a. is one that has met the elements of proof.
b. is one that is dismissed following a motion for a directed verdict.
c. is a term that applies in criminal law only.
d. both a and c
ANS: A
TOP: trial process
PTS: 1
55. What type of scientific/expert testimony requires a higher standard of review before it can be used in
court?
a. any academic studies
b. any studies developed for use at trial
c. any studies in an area in which experts differ
ANS: B
TOP: trial process
PTS: 1
56. If there is a hung jury:

a. the case must be dismissed.
b. the judge finds in favor of the defendant.
c. the case can be retried.
d. the judge can grant summary judgment.
ANS: C
TOP: trial process
ESSAY
PTS: 1
1. Realty Partners, Inc. is being sued by a buyer who bought a home listed by Realty Partners. Realty
earned a commission on the sale. The buyer is suing because the house has termites. Realty had
obtained an inspector's report that described the home as "termite-free." Realty has brought the
inspector into the lawsuit (added inspector as a cross-claimant). What type of information does Realty
need? How can it be obtained?
ANS:
Through discovery process: interrogatories, requests for production of documents, requests for
admission, deposition of inspector.
PTS: 1
TOP: discovery
2. List the information that will be required to file a valid complaint on a breach of contract suit.
ANS:
(1) Court and subject matter jurisdiction
(2) Venue
(3) Statement of facts - when contract entered into and its provisions; what was not performed
(4) Claim for damages - money and/or equitable relief such as change in behavior
PTS: 1
TOP: complaints
3. Outline the steps involved in litigation.

ANS:
(1)
Complaint
(2)
Service of summons and complaint
(3)
Answer
Counterclaim
(4)
Motion for judgment on the pleadings
(5)
Discovery
a. Interrogatories
b. Depositions
c. Requests for production
d. Requests for admission
(6)
Pretrial conference
(7)
Trial
Jury selection
Opening statements
Plaintiff's case
Defendant's case
Directed verdict motion
Closing statements
Jury instructions
Jury deliberations
Jury verdict
Motion for judgment NOV
Motion for a new trial
Appeal
PTS: 1
TOP: litigation
4. Explain the differences between arbitration and litigation.

ANS:
Arbitration
Private
Faster
Less stringent procedural rules
Relaxed rules of evidence
Can be nonbinding
Expert can hear case
PTS: 1
Litigation
Public
Slow moving
Must follow procedure exactly
Rules of evidence apply
Results are binding
No specific expertise - just a trial judge
TOP: arbitration | litigation
5. What is a hung jury and what is its effect?

ANS:
A hung jury results when the jurors cannot agree on a verdict. The case must then be retried.
PTS: 1
TOP: trial process
6. Describe the role of jury selection consultants.

ANS:
These firms are used to help lawyers select those jurors who will be most sympathetic to their case.
The firms use demographic data and attitude surveys to assist in selection. They can also be used
during the trial to assist in the presentation of the case based on jurors' responses to lawyers, evidence,
and witnesses.
PTS: 1
TOP: jury selection
7. List and describe the forms of alternative dispute resolution other than arbitration.
ANS:
Mediation:
Rent-a-judge:
Mini-trial:
PTS: 1
Third party intervenes in an attempt to bring the disputing parties together.

Private court used to hear case and reach a decision.
Private trial where each side presents the heart of its case for a third party to
review and offer a decision or resolution.
TOP: ADR
8. Name and describe three types of motions that can be made prior to trial.
ANS:
Motion to dismiss: Made when there is no cause of action stated in the complaint or when a court lacks
jurisdiction.
Motion for judgment on the pleadings: Made when even if everything in the pleadings is correct, there
is no cause of action stated.
Motion for summary judgment: Made when there are no factual issues, only a dispute of law.
PTS: 1
TOP: motions
9. Joan Evans has rented a storage locker at Storage 'R' Us for the past two years. She has discovered
another storage locker facility that is nearby is climate-controlled, and only costs a few dollars more
per month to rent. Joan has decided to end her lease at Storage 'R' Us and move her things to the
climate-controlled facility. The management at Storage 'R' Us has refused to refund Joan's $35 security
deposit. Joan's contract provides that if she sweeps out her locker and no damage is done, the deposit
will be returned. Joan has swept the locker, and there is no damage in her unit. What suggestions can
you give Joan for resolving the dispute?
ANS:
Evans could try small claims court. She could have her case heard and need not have an attorney.
Evans could also try a mediator or could possibly use a private court such as rent-a-judge. The
important thing is to resolve the dispute without great expense since the amount involved is so small.
But Evans will still have the opportunity to enforce her rights through the courts if other efforts fail.
PTS: 1
TOP: ADR
NAT: AACSB: Analytic | AACSB: Reflective Thinking
10. Explain the jurisdiction of courts within one nation over businesses from other nations.
ANS:
If the business is operating, entering into contracts, or advertising in a country, it is subject to that
country's regulations and laws and also its court's jurisdiction.
PTS: 1
TOP: jurisdiction
11. Discuss the issues for businesses concerning potential litigation and portable devices such as
smartphones and laptops.
ANS:
Smartphones and laptops can be used outside of a physical workplace and may be treated as a personal
device instead of a work device. In the event of litigation, the messages and other communications
may be obtained by the opposing party. Companies need to be aware of its legal responsibilities and
develop policies that protect the company and follow the legal requirements.
PTS: 1
TOP: discovery
12. What are the differences between arbitration and mediation?

ANS:
Arbitration
hearing
evidence
decision
Mediation
discussions
recommendations
no decision
PTS: 1
13. Explain the attorney/client privilege.

ANS:
TOP: ADR
The attorney/client privilege allows clients to communicate openly and candidly with their lawyers
without the fear that the lawyer will be required to disclose the information revealed. The information
is protected by the lawyer under the rules of client confidentiality. There are only limited exceptions
for the lawyer being required to disclose what was discussed, such as the client indicating an intent to
commit a crime.
PTS: 1
TOP: attorney-client privilege
14.
Discuss why mediation is replacing arbitration as the preferred method of business dispute resolution.
ANS:
Arbitration has become thought of as too similar to litigation; since many businesses shifted to
arbitration to avoid litigation, this is not viewed as a positive sign for business.
PTS: 1
TOP: mediation
15. List the types of costs a company involved in litigation experiences. List the costs that can result if
litigation is not pursued.
ANS:
Costs of litigating:
Legal costs
Time costs (downtime)
Image costs
Capital costs
Costs of not litigating:
Loss of copyright/tradename protection
Public relations damages
Maybe existence of the company
PTS: 1
TOP: arbitration | litigation

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CHAPTER 4MANAGING DISPUTES: ALTERNATIVE DISPUTE RESOLUTION

AND LITIGATION STRATEGIES

NAT: AACSB: Analytic

2. Statutes of limitations are always four years.

NAT: AACSB: Analytic

3. To be valid, a complaint must have every fact listed in it.

NAT: AACSB: Analytic

4. A complaint must establish subject matter jurisdiction.

NAT: AACSB: Analytic

5. Venue is the subject matter jurisdiction of a court.

NAT: AACSB: Analytic

6. Specific performance is an equitable remedy.

NAT: AACSB: Analytic

7. Injunctions are equitable remedies.

NAT: AACSB: Analytic

NAT: AACSB: Analytic

9. The summons is the same document as the complaint.

NAT: AACSB: Analytic

10. The complaint and answer are both pleadings.

NAT: AACSB: Analytic

11. A default is entered when the defendant counterclaims.

NAT: AACSB: Analytic

NAT: AACSB: Analytic

NAT: AACSB: Analytic

14. A motion to dismiss must be filed before an answer is filed.

NAT: AACSB: Analytic

NAT: AACSB: Analytic

16. Interrogatories must be answered in writing and under oath.

NAT: AACSB: Analytic

NAT: AACSB: Analytic

18. Depositions are generally taken in the courtroom.

NAT: AACSB: Analytic

19. Work product is discoverable.

NAT: AACSB: Analytic

20. Every trial requires a jury.

NAT: AACSB: Analytic

21. Voir dire is the process of screening prospective jurors.

NAT: AACSB: Analytic

22. A peremptory challenge is a challenge for cause.

NAT: AACSB: Analytic

NAT: AACSB: Analytic

NAT: AACSB: Analytic

25. All hearsay is inadmissible as evidence.

NAT: AACSB: Analytic

26. Jury instructions explain to jurors how to elect a foreman.

NAT: AACSB: Analytic

27. A hung jury requires a retrial of the case.

NAT: AACSB: Analytic

NAT: AACSB: Analytic

NAT: AACSB: Analytic

NAT: AACSB: Analytic

31. A mini-trial is a public method of dispute resolution.

NAT: AACSB: Analytic

NAT: AACSB: Analytic

33. Rent-a-judge facilities are private operations.

NAT: AACSB: Analytic

NAT: AACSB: Analytic

35. The results of an arbitration hearing are generally binding.

NAT: AACSB: Analytic

36. The results of mediation are generally binding.

NAT: AACSB: Analytic

37. In arbitration, the parties develop the proposed list of arbitrators.