Business Law with UCC Applications, 13e

1. Business Law with UCC Applications, 13e Alternative Dispute Resolution Chapter 4

2. Learning Objectives • Identify the shortcomings of litigation • List the advantages and disadvantages of ADR • Identify the advantages of mediation • Explain the nature of an arbitration hearing • Outline the med-arb process • Relate the role of an early neutral evaluator

3. Learning Objectives • Describe the process of running a summary judgment trial • Clarify the private options available under proactive ADR • Specify the governmental options available under proactive ADR • Discuss the advantages and disadvantages of the science court proposal

4. Question? What occurs whenever individuals attempt to resolve disagreements by stepping outside the usual adversarial system? • Alternative dispute resolution • Substitute resolution • Dispute optional resolution • Alternative resolution

5. Alternative Dispute Resolution • Alternative Dispute Resolution • occurs whenever people attempt to resolve disputes by moving outside the traditional adversarial system and using creative settlement techniques

6. Problems with Litigation • Justice often goes to those who can afford it • Litigation can be expensive • Litigation can be time consuming • Some jurisdictions require litigants to submit to hearings before securing a trial date

7. The ADR Option • Time involved in settling a dispute can be shortened and expenses lowered • Proactive ADR anticipates and deals with disputes before they occur

8. Shortcomings of ADR • Private administration of justice hampers the development of the law • Many critical social issues may never reach the judicial system • Limited scope

9. ADR Techniques

10. Question? What is the process where a neutral third party works with the parties to reach a mutually agreeable settlement? • Arbitration • Mediation • Negotiation • Adjudication

11. ADR Techniques • Mediation • a non-binding process where a neutral third party works with the parties to reach a mutually agreeable settlement • The mediator acts as an impartial outsider who can suggest solutions that will please all the parties involved in the dispute

12. ADR Techniques • Arbitration • process by which the parties invite a third party, called an arbitrator, to settle their dispute • Required arbitration is called mandatory arbitration

13. Shortcomings of Arbitration • Hearing is run like a trial but without the safeguards that come with the rules of civil procedure, discovery, and motion practice • Wide discretion granted to arbitrators can lead to unreasonable decisions and unjustifiable awards

14. ADR Techniques • Med-arb • process that combines mediation with arbitration • If after mediation, a dispute is still unsettled, parties can move to an arbitration hearing

15. Question? What is the process by which the parties permit a referee to assess their case based on the facts and legal arguments alone? • Early neutral evaluation • Summary jury trial • Civil judgment • Neutral judgment

16. ADR Techniques • Early neutral evaluation • process by which the parties permit a referee to assess their case based on the facts and legal arguments alone

17. ADR Techniques • Summary jury trial • shortened version of a trial conducted in less than a day before an actual jury which then renders an advisory verdict in the case • Offers litigants a chance to see how a jury would react

18. ADR Techniques • Private civil trial • parties hire a retired judge or magistrate to hear their dispute following the same rules used in an official trial • Advantages • parties can hold trial at a time and place of their choosing • parties can choose their own judge

19. Proactive ADR • Partnering • ADR contract clauses • Settlement week • Negotiated rule making • Post-Appellate procedures • International arbitration agreements • Science court proposal

20. Proactive ADR • Partnering • process that establishes supportive relationships among the parties to a contract in order to head off disputes before they occur • Best used when a contract involves complex interrelationships among a wide variety of different parties

21. Proactive ADR • ADR contract clause • specifies that the parties to the agreement have promised to use an alternative resolution dispute technique when a disagreement arises rather than litigating the issue

22. ADR Contract Clause • Advantages • helpful when two or more parties have an extended affiliation that may involve numerous contracts • beneficial to those parties with the weakest position in a contractual relationship

23. Question? What is the five day period during which a court’s docket is cleared of all business, except for settlement hearings? A. Mediation week B. Settlement court C. Settlement week D. Arbitration week

24. Proactive ADR • Settlement week • five day period during which a court’s docket is cleared of all business, except for settlement hearings • Cases are matched with mediators and a schedule is established

25. Proactive ADR • Negotiated rule making (reg-neg) • process by which an agency invites the people and the organizations to be affected by a new rule to have input into the writing of that rule

26. Proactive ADR • Post-appellate procedures • involve taking a case that has been rejected or dismissed by a domestic court to an international organization • The post-appellate case is brought against the government of the aggrieved party for allegedly failing to provide an appropriate legal remedy to redress the grievances of the victim.

27. Proactive ADR • International arbitration agreement • involves a pledge to use arbitration should the parties find themselves in disagreement as to the enforcement rights under the original contract.

28. Question? Which court acts as a forum for disputes involving scientific and technological controversies? • Technology court • Science court • Science resolution body • Technology appellate board

29. Proactive ADR • Science court • acts as a forum for disputes involving scientific and technological controversies • Judges on the science court are scientists educated in the areas under investigation, allowing them to use their expertise