#1
What is the main goal of Alternative Dispute Resolution (ADR) in business law?
To avoid litigation and resolve disputes outside of court
ExplanationAvoiding court proceedings by resolving disputes externally.
#2
Which of the following is a common method of Alternative Dispute Resolution (ADR)?
Arbitration
ExplanationA method involving a neutral third party to make decisions.
#3
In mediation, who facilitates the resolution process between parties in a dispute?
Mediator
ExplanationA neutral party guiding discussions towards resolution.
#4
What is the difference between arbitration and mediation in Alternative Dispute Resolution (ADR)?
Mediation is legally binding, while arbitration is not.
ExplanationMediation's decisions are legally enforceable; arbitration's are not.
#5
What is the primary advantage of arbitration over litigation in resolving business disputes?
Arbitration is less expensive and time-consuming.
ExplanationCost-effective and quicker resolution compared to court.
#6
In the context of Alternative Dispute Resolution (ADR), what does the term 'ADR clause' refer to?
A section of a legal document requiring arbitration or mediation before litigation.
ExplanationContract provision mandating ADR prior to litigation.
#7
In which situation might a party prefer litigation over Alternative Dispute Resolution (ADR)?
When the parties want more control over the process
ExplanationPreference for greater process control.
#8
Which international organization provides arbitration services for business disputes?
International Chamber of Commerce (ICC)
ExplanationA global body offering arbitration services.
#9
Which of the following is a disadvantage of mediation in resolving business disputes?
Mediation may not result in a legally enforceable decision.
ExplanationOutcome may lack legal enforceability.
#10
What is the role of a neutral third party in the arbitration process?
To decide the outcome of the dispute
ExplanationImpartial party making binding decisions.
#11
Which principle is commonly associated with the concept of mediation in Alternative Dispute Resolution (ADR)?
Principle of confidentiality
ExplanationMaintaining privacy during mediation proceedings.
#12
What is the concept of 'binding arbitration' in Alternative Dispute Resolution (ADR)?
An arbitration process where the decision is final and legally binding
ExplanationArbitration with legally binding outcomes.