Chapter 4 Dispute Resolution

MULTIPLE CHOICE

1. What is the goal of negotiation?

a. to set priorities for dispute
resolution
b. to prolong the negotiation
process
c. to reach a fair and acceptable
outcome
d. to assess resolutions to legal
disputes
ANS: C PTS: 1 DIF: Easy REF: 75
BLM: Remember

2. Negotiating teams from two small companies reach a mutually agreeable

compromise to settle a contractual dispute. The parties shake hands and
part company with feelings of relief. What likely had the greatest
motivating influence on the disputing parties to achieve a remedy through
this form of dispute resolution?
a. realizing cost savings for
concerned parties
b. assurance that insurance
covered the risk
c. justification of the use of the
firm’s resources
d. hourly rate charged by expensive
lawyers
ANS: A PTS: 1 DIF: Medium REF: 75
BLM: Analyze

3. A store manager of a large grocery chain makes a verbal offer to

compensate a customer for a serious hand injury that requires medical
attention. Even though the store manager’s offer is refused, he is seriously
reprimanded by the vice president of the legal risk department. What was
the vice president’s most significant concern?
a. to pay as small a settlement as
possible
b. to clarify the situation before
entering negotiations
c. reaching a fair and acceptable
outcome
d. negotiating could imperil risk
insurance coverage
ANS: D PTS: 1 DIF: Medium REF: 75
 BLM: Analyze

4. A mediator attempting to negotiate a resolution to a commercial dispute

has conceded that she is unable to move the dispute through the
mediation process. What would the mediator most likely say is the main
factor contributing to the failed mediation?
a. the parties’ inability to choose
effective teams of negotiators
b. the unwillingness of one party to
compromise and quickly resolve
the issues
c. the mediator’s lack of familiarity
with the industry and the
businesses
d. the parties’ mutual failure to
include an arbitration clause in
their contract
ANS: B PTS: 1 DIF: Medium REF: 79
BLM: Analyze

5. Who is characterized as a good listener whose professional function is to

provide assistance to disputing parties wanting to negotiate a settlement
of their dispute?
a. judge
b. mediator
c. lawyer
d. arbitrator
ANS: B PTS: 1 DIF: Easy REF: 79
BLM: Understand

6. Walter receives and considers submissions from both parties involved in a

commercial dispute. He will deliver his decision shortly. In accordance with
the terms of the contract governing the disputing parties’ relationship,
they are bound to comply with that decision. What role does Walter play in
providing a resolution to this dispute?
a. mediator
b. judge
c. arbitrator
d. adjudicator
ANS: C PTS: 1 DIF: Easy REF: 80
BLM: Understand

7. Two mid-sized business enterprises want to enter into a long-term

commercial relationship. Both negotiating teams have been instructed to
ensure that any disputes that may arise will proceed through the
alternative dispute resolution governed by legislation. What action would a
 lawyer most likely advise the negotiating teams to take in order to satisfy
that requirement?
a. The parties must include a
mutually agreeable arbitration
clause in their agreement.
b. The parties must choose an
acceptable adjudication clause in
their contract.
c. The contract should include a
mutually agreeable alternative
dispute resolution clause.
d. The parties’ contract should
include an acceptable mediation
clause.
ANS: A PTS: 1 DIF: ChallengingREF: 80
BLM: Analyze

8. Which of the following circumstances would cause a risk management

department to consider referring a commercial dispute to alternative
dispute resolution?
a. The parties are unconcerned
about privacy or confidentiality.
b. The parties disagree about the
nature of the disputed issues.
c. The parties both desire a quick
resolution of minor problems.
d. One or more of the parties does
not respond to cost incentives.
ANS: C PTS: 1 DIF: Medium REF: 74
BLM: Understand

9. Dante is a senior risk manager who has been assigned the task of
determining the viability of obtaining an enforceable remedy regarding the
non-payment of a customer’s account. Which of the following questions
must initially be answered in the positive in order for Dante to proceed
further?
a. If litigation is successful, will the
offending party’s assets satisfy
the judgment?
b. Is the offending party willing to
negotiate a compromise in good
faith?
c. Does the significance of the
dispute justify the expenditure of
time and resources?
d. What priority will the offending
party give to providing an
 effective negotiator?
ANS: A PTS: 1 DIF: ChallengingREF: 89
BLM: Analyze

10. What does “ADR” stand for, in reference to “ADR training”?

a. alternative dispute restitution
b. alternative dispute resolution
c. alternative dispute regulations
d. alternate director responsibilities
ANS: B PTS: 1 DIF: Easy REF: 74
BLM: Remember

11. Which of the following characterizes a required element in circumstances

where ADR has been chosen as the preferred method of resolving a
dispute between commercial entities?
a. the wish to avoid rushing a
settlement
b. a mutual desire to retain the
relationship
c. one party will make a large
payout of cash
d. the wish to amicably terminate
the relationship
ANS: B PTS: 1 DIF: Medium REF: 75
BLM: Analyze

12. Two companies involved in an international transaction contractually

agreed on which country’s laws would apply and which country’s court
would preside over litigation of disputed matters. According to those
provisions, an English court awarded judgment in favour of the Canadian
company against the Italian company for breach of contract. Which of the
following would immediately indicate that the Canadian company
continues to face a significant hurdle with regard to successfully
concluding the disputed matter?
a. refusal by the New York
Commercial Award Enforcement
Agency to recognize the validity
of the U.K. court’s decision
b. the refusal of an Italian court to
accept jurisdiction to enforce the
judgment obtained from the
English court
c. the filing of an appeal of the
English court’s decision with the
UNCITRAL International
Commercial Appeal Court
 d. the tardiness of the Italian
company to submit payment in
honour of the judgment given by
the English court
ANS: B PTS: 1 DIF: ChallengingREF: 82
BLM: Evaluate

13. The activities of a large multinational corporation violated federal and

provincial environmental laws. It polluted a clean water source and caused
illness among the people and wildlife inhabiting the affected area. What
would the corporation’s lawyers most likely suggest as the main reason for
attempting to force resolution of the legal dispute through ADR?
a. a desire to avoid establishing a
common law precedent for
damages arising from
environmental infractions
b. a need to sustain the operation
based on the amount of capital
resources committed to it
business activities
c. the ability to keep details of the
contamination and of the
settlement private and
confidential
d. the fact that an arbitrator’s
decision will be binding and likely
be favourable to the corporation
ANS: C PTS: 1 DIF: ChallengingREF: 76
BLM: Analyze

14. Which of the following would be a valid criticism of the use of arbitration
clauses in contracts between investment brokers and their clients?
a. A code of conduct includes
legislated procedures for
resolving consumer complaints.
b. Clients are unable to ensure the
independence and expertise of a
suggested arbitrator.
c. Arbitration firms favour brokers
and deny the clients due process.
d. An arbitration procedure requires
clients to pay a fee to have their
complaint remedied.
ANS: C PTS: 1 DIF: Medium REF: 80
BLM: Evaluate

15. What is the role of common law and statue law with regard to the litigation
 of a commercial dispute?
a. Both provide a source of the
objective rules applicable to the
disputed matter.
b. Each provides a source of the
substantive rules applicable to
the contested matter.
c. Both provide rules governing the
legal foundation for determining
how trials proceed.
d. Each contains rules that
determine what the process
leading up to trial will be.
ANS: B PTS: 1 DIF: Medium REF: 82
BLM: Understand

16. Which of the following is applied to determine how a disputed commercial

claim will proceed through the civil justice system?
a. substantive rules
b. procedural rules
c. objective rules
d. mandatory rules
ANS: B PTS: 1 DIF: Easy REF: 82
BLM: Understand

17. What difference between litigation in Canada and litigation in the United
States causes concern for Canadian companies that do business in the U.S.
marketplace?
a. American lawyers are not usually
trained in the same way as
Canadian lawyers are.
b. Unlike in Canada, most U.S.
jurisdictions do not require a
losing party to pay a portion of
the winner’s costs.
c. Unlike in Canada, most U.S.
jurisdictions have not embraced
alternative dispute resolution as
a means for resolving disputes.
d. Unlike in Canada, most U.S.
jurisdictions do not have
limitation periods that restrict
plaintiffs from suing after the
passage of a considerable
amount of time.
ANS: B PTS: 1 DIF: ChallengingREF: 90
 BLM: Evaluate

18. SolarCell Corp. has decided to litigate a dispute over an $8,000

outstanding account. Over the course of the business relationship, the
customer has proven to be both unreliable and unreasonable. SolarCell is
no longer interested in maintaining the business relationship. Which court
will have jurisdiction to decide the outcome of SolarCell’s claim?
a. small claims court
b. class actions court
c. the Trial Court of Canada
d. the Superior Court of Justice
ANS: A PTS: 1 DIF: Medium REF: 84
BLM: Analyze

19. What is the meaning of the term “limitation period”?

a. the time covered by the retainer
paid for the lawyer’s services
b. a set period of time in which a
legal action must be commenced
c. a period of time that must pass
before a claim can be filed
d. a maximum amount recoverable
for breach of contract
ANS: B PTS: 1 DIF: Medium REF: 83
BLM: Remember

20. Davey Jones Law Offices acts as legal counsel to a large commercial client.
The client has instructed Mr. Jones to prepare and file a litigation claim
naming a competitor as the opposing party in the lawsuit. What title is
given to Davey Jones’s client in the initiating document?
a. respondent
b. petitioner
c. plaintiff
d. defendant
ANS: C PTS: 1 DIF: Easy REF: 85
BLM: Understand

21. Davey Jones Law Firm has filed a claim with the court on behalf of its
client, naming Gaston’s Commercial Fabricators Inc., as the opposing party.
What title is given to Gaston’s in the initiating document?
a. plaintiff
b. defendant
c. respondent
d. petitioner
ANS: B PTS: 1 DIF: Easy REF: 85
BLM: Understand
22. NoTangles Wireless Connections Inc. enters the details required on the
claim form provided by the small claims court: each party’s name and
address, the nature of the dispute, and the claim amount of $25,050. Why
will the court clerk refuse to register NoTangles’s claim?
a. the jurisdiction’s small claims
court dollar limit is $2,500
b. the amount claimed exceeds the
court’s jurisdiction
c. the court lacks jurisdiction to
hear commercial disputes
d. all litigation claims must be filed
by law firms
ANS: B PTS: 1 DIF: Medium REF: 84
BLM: Analyze

23. Following the court’s registration of a claim, which of the following

immediately activates the limitation period with respect to the deadline for
filing of the defendant’s response?
a. e-mail transmission of the claim
to the respondent’s lawyer
b. publication of the notice of claim
in the local newspaper
c. personal service of the notice of
claim on the respondent
d. personal service of the claim on
the defendant
ANS: D PTS: 1 DIF: Medium REF: 85
BLM: Evaluate

24. What is the meaning of “evidence” in the legal environment?

a. the proof presented in court to
support a claim
b. facts that are strictly
documentary in nature
c. facts that are strictly verbal in
nature
d. the oral details of the defence to
the claim
ANS: A PTS: 1 DIF: Easy REF: 86
BLM: Remember

25. What is the role of the pleadings stage of the litigation process?
a. to allow time for the parties to
plead the basis of their case
before a judge
 b. to prepare a document
containing the allegations
supporting the claim
c. to allow time for the defendant to
concede and allow default
judgment
d. to facilitate the exchange of
formal documents stating the
basis of the suit
ANS: D PTS: 1 DIF: Medium REF: 85
BLM: Analyze

26. Sian has been named in a lawsuit alleging a large balance owed on an
automobile lease. Sian believes the contract was voided when the
vehicle’s motor ceased operating the day after signing the lease
agreement. Sian is still owed the compensation the dealership promised to
pay her as reimbursement of the towing cost to have the vehicle returned
to the dealership after it broke down. If Sian wants to avoid a default
judgment and recover her losses, how should she proceed?
a. issue a request for a discovery of
documents
b. issue a request for a pretrial
conference
c. immediately file a defence and
counterclaim
d. file a statement of claim based
on her losses
ANS: C PTS: 1 DIF: Medium REF: 85
BLM: Evaluate

27. John is hoping for an opportunity to settle his lawsuit based on the
strength of his evidence before an actual trial takes place. How should he
instruct his lawyer to proceed with respect to the litigation process?
a. undertake the informal pre-trial
discovery of evidence process
b. complete formal discovery
involving the disclosure of
supporting evidence
c. file formal evidence for
presentation to the judiciary to
support a claim
d. initiate the informal disclosure
process of all supporting
evidence
ANS: B PTS: 1 DIF: ChallengingREF: 85
BLM: Evaluate
28. What is a counterclaim?
a. It formally sets out judiciary
evidence filed to counter the
plaintiff’s claim.
b. It documents the response to a
defence claimed by the
countering party.
c. It documents the claim for loss
filed against the party initiating
the process.
d. It formally sets out facts to be
relied in defence against the
plaintiff’s claim.
ANS: C PTS: 1 DIF: ChallengingREF: 85
BLM: Analyze

29. Wilhelm Commercial Insurers Inc. is considering initiating a claim against

an individual it now believes fraudulently misrepresented the facts of an
insurance claim. The individual had been paid a substantial sum for a
serious neck injury alleged to have been sustained in a slip and fall
accident on a staircase in a retail store. If Wilhelm proceeds with the claim,
how will the court place the burden of proof?
a. on the party alleging the loss
b. on each party’s lawyer at the
discovery stage
c. on each party to support their
respective positions
d. on the party denying the loss
ANS: A PTS: 1 DIF: Medium REF: 86
BLM: Evaluate

30. What is the burden of proof required to be satisfied in a civil lawsuit?

a. proof on the balance of
probabilities
b. proof that is beyond question
c. proof beyond a reasonable doubt
d. proof that is beyond any doubt
ANS: A PTS: 1 DIF: Medium REF: 86
BLM: Remember

31. In addition to setting out the details of who must pay how much to whom,
which of the following is required in a court’s decision in a civil case?
a. The court’s account of events
and application of relevant case
law.
 b. The identification of relevant
legal guidelines for interpretation
of contracts.
c. Appropriate justification based on
the evidence and legal rules.
d. Details about the provincial
jurisdictions where enforcement
is possible.
ANS: C PTS: 1 DIF: ChallengingREF: 87
BLM: Understand

32. The Ultimate Caterer Inc. did not fare well in court. In addition to damages,
the company was ordered to pay costs to the young couple whose
wedding dinner left them and many of their guests very ill. Which of the
following correctly describes the meaning of costs in these circumstances?
a. the legal fees incurred by the
defendant in a lawsuit
b. the amount the loser must pay
toward the winner’s expenses
c. the legal fees incurred by the
plaintiff in a lawsuit
d. the amount of court fees charged
for litigating the lawsuit
ANS: B PTS: 1 DIF: Medium REF: 87
BLM: Understand

33. What litigation term is used to describe the party that has a judgment
registered against them?
a. judgment indebted
b. the judgment creditor
c. judgment proof
d. the judgment debtor
ANS: D PTS: 1 DIF: Medium REF: 89
BLM: Understand

34. For how long, and under what circumstances, would a losing party’s
personal income and other assets such as land, houses, and vehicles be at
risk?
a. for as long as 20 years in some
provinces, to satisfy the payment
of a judgment
b. for as long as 20 years in some
provinces, beginning on the
dissolution of a partnership
c. for up to a 10-year period in
cases of commercial bankruptcy
 d. for up to a 10-year period in
cases of corporate insolvency
ANS: A PTS: 1 DIF: Medium REF: 89
BLM: Understand

35. Even though the amount of accumulated interest awarded previously by

the trial judge was reduced, management of Renna Inc. indicated to its
lawyer that it was pleased with the result of her efforts on the company’s
behalf. Which of the following would Renna Inc.’s lawyer have most likely
stated as an explanation of the decision rendered by the appeal court?
a. The appeal court confirmed the
original decision due to the trial
judge’s understanding and
application of the law.
b. The appeal court varied the
original decision due to the trial
judge’s misunderstanding and
application of the law.
c. The appeal court reversed the
original decision based on
rehearing arguments of the facts
cited by the trial judge.
d. The appeal court quashed the
original decision based on
rehearing arguments of the facts
cited by the trial judge.
ANS: B PTS: 1 DIF: ChallengingREF: 89
BLM: Analyze

36. Martha’s lawyer is not satisfied with the court’s decision, so he is urging
her not to accept it. What step in the litigation process is Martha’s lawyer
recommending she take?
a. appeal
b. adjudication
c. litigation
d. ADR
ANS: A PTS: 1 DIF: Easy REF: 89
BLM: Understand

37. What term is given to the losing party who will be filing an appeal within
30 days of the date of a trial court’s decision?
a. defendant
b. appellant
c. petitioner
d. respondent
ANS: B PTS: 1 DIF: Easy REF: 89
 BLM: Remember

TRUE/FALSE

1. An unsuccessful litigant may appeal a trial decision as long as notice of

that party’s intention to appeal is filed within a specified number of days
following the delivery of the trial court’s decision.

ANS: T PTS: 1 DIF: Medium REF: 90

BLM: Understand

2. To a business that has become the target of litigation, contingency fees

can result in more litigation by improving accessibility to the legal system
for claimants who might otherwise lack the resources to sue.

ANS: T PTS: 1 DIF: Easy REF: 90

BLM: Understand

3. There is a short-term concern that widespread use of ADR will result in

diminished openness and accountability of the legal system.

ANS: F PTS: 1 DIF: Medium REF: 80

BLM: Understand

4. Upon learning that a problem with a faulty computer system design

caused a customer’s business to be disrupted, the risk manager should
check the applicable supply contract to determine the extent of its liability.

ANS: T PTS: 1 DIF: Medium REF: 75

BLM: Understand

5. It is considered unwise to undertake litigation without having an

appreciation of its potentially adverse consequences.

ANS: T PTS: 1 DIF: Easy REF: 82

BLM: Understand

6. The legal foundation and outcome of a litigation claim are governed

exclusively by the legal rules contained in relevant common law.

ANS: F PTS: 1 DIF: Medium REF: 82

BLM: Remember

7. Procedural rules dictate how a claim is carried through the civil justice
system.

ANS: T PTS: 1 DIF: Easy REF: 82

BLM: Remember

8. A controversial development has been the awarding of legal costs against

 unsuccessful plaintiffs involved in class action suits.

ANS: T PTS: 1 DIF: Medium REF: 83

BLM: Remember

9. The process of discovery includes the examination of documents, oral

testimony, and expert reports.

ANS: T PTS: 1 DIF: Easy REF: 85

BLM: Remember

10. The filing and service of a defence is part of the pleadings stage of a legal
action.

ANS: T PTS: 1 DIF: Easy REF: 85

BLM: Remember

11. The party ordered by the court to pay a specified amount to a winner of a
lawsuit is known as a judgment debtor.

ANS: T PTS: 1 DIF: Easy REF: 89

BLM: Remember

12. A commercial business should seek to manage the risk of loss by securing
a basic coverage insurance policy with a reputable insurance company.

ANS: F PTS: 1 DIF: Medium REF: 74

BLM: Remember

13. If a debt owed by a customer is not large and the customer is in financial
difficulty, negotiating a payment plan or even writing off the debt may be
more practical than spending money to try to collect on the account.

ANS: F PTS: 1 DIF: Easy REF: 72

BLM: Remember

14. When a dispute is covered by insurance, it is important that employees are

aware that an attempt to negotiate a settlement may jeopardize coverage
unless the insurer consents to the company conducting negotiations.

ANS: T PTS: 1 DIF: Easy REF: 75

BLM: Remember

15. It is unusual and not advisable for the defendant to insist that a
confidentiality clause be incorporated into a settlement agreement or
release.

ANS: F PTS: 1 DIF: Medium REF: 76

BLM: Remember

16. One of the factors influencing whether negotiations to remedy a dispute

 will succeed is the effectiveness of the parties involved in the negotiations.

ANS: T PTS: 1 DIF: Easy REF: 76

BLM: Remember

17. One of the most important factors to be considered when deciding whether
to proceed with a litigation of a conflict that failed to be remedied through
negotiation is whether the business can devote the necessary resources to
proceed with the dispute.

ANS: T PTS: 1 DIF: Medium REF: 76

BLM: Remember

18. According to the rules provided for under the Arbitration Act, an
arbitrator’s binding decision may be referred for appeal before a judge
presiding in a superior court.

ANS: F PTS: 1 DIF: Medium REF: 81

BLM: Remember

19. It would be very rare to find a significant commercial contract, whether

international or domestic, that would contain an arbitration clause in it.

ANS: F PTS: 1 DIF: Easy REF: 81

BLM: Remember

20. The suitability of disputes for alternative dispute resolution is not

dependent on the type of law involved.

ANS: T PTS: 1 DIF: Easy REF: 80

BLM: Remember

SHORT ANSWER

1. Explain the nature of negotiation as an alternative dispute resolution

method used in a business setting. Include a brief description of the
technical rules that govern the operation of the negotiation process, the
parties involved in preparing for negotiations, who should conduct the
negotiations, and the elements required for a negotiated resolution or
settlement to be reached.

ANS:
Negotiation is a tool that business owners and managers use to assess,
evaluate, and develop resolutions to legal disputes on a relatively informal
and inexpensive basis. The process of negotiation is not governed by
technical rules, which allows the process to operate in whatever way the
parties wish in order to solve their problem. Negotiation should occur at
the senior management level, and legal advice will be required. In order
for a negotiated resolution or settlement to be reached, all parties must
agree to a compromise and negotiate in good faith.
 PTS: 1 DIF: Medium REF: 75-78 BLM: Remember

2. Identify the party on whom the burden of proof rests with respect to a trial
of a commercial dispute. Briefly explain what satisfying the burden of proof
will entail in the trial process, how the opposing party is entitled to respond
at this stage, and what is required of the judge presiding over the litigation
of the matter.

ANS:
At trial, the burden of proof falls on the plaintiff, who must formally
introduce evidence according to established rules to prove its case on the
balance of probabilities. To satisfy this requirement, the plaintiff must
provide that there is a better than 50 percent chance that the
circumstances of the contract are as it has contended they are. The
plaintiff must also prove that it is entitled to receive the compensation it
has claimed to be entitled to. The defendant has the opportunity to
challenge the plaintiff’s witnesses and documents and to introduce its own
account of events to oppose the claim. The judge must decide what
happened between the parties and whether their claims are justified. Once
the facts have been established, the judge will then consider and apply the
relevant case law to arrive at a decision.

PTS: 1 DIF: ChallengingREF: 86 BLM: Remember

3. Discuss what a class action lawsuit is, including a brief description of the
requirements that must be met under legislation passed in some provincial
jurisdictions that would enable a class action law suit. Also include a brief
explanation of how a determination is made as to whether a class action
may proceed in a province that has not passed specific legislation
governing the process.

ANS:
A class action is a lawsuit launched by one person representing a larger
group whose members have similar claims against the same defendant.
Generally, the legislation enables a class action to be certified or approved
by the court if the class can be clearly defined, there are common issues of
fact or law, success for one class member means success for all, and the
proposed representative adequately reflects the common interests of class
members. In provinces without class action legislation, class actions may
be allowed to proceed based on similar common law criteria.

PTS: 1 DIF: Medium REF: 83 BLM: Remember

4. Contrast the advantages and disadvantages of alternate dispute

resolution.

ANS:
Alternative dispute resolution offers a number of advantages to parties in a
business relationship:
 i) the parties control the process
ii) the parties control the selection of the facilitator
iii) the facilitator is typically chosen based on expertise in the disputed
subject
iv) the process is faster and less expensive than litigation
v) the outcome of the process can be kept confidential

Alternative dispute resolution poses the following disadvantages:

i) the process does not always produce a resolution
ii) time and money may be wasted if the matter proceeds to litigation
iii) the time and money involved could exceed the cost of directly
proceeding to a trial
iv) a long-term concern that widespread use of ADR will result in the
diminished openness and accountability of the legal system

PTS: 1 DIF: ChallengingREF: All BLM: Remember

5. How does a person who wins a case in civil court actually collect on the
judgment? What limitations are there on his/her ability to collect?

ANS:
After the judge makes the judgment and order, the judgment creditor (i.e.,
winner) is allowed to take enforcement proceedings against the judgment
debtor (i.e., loser). Depending on the jurisdiction, a court official or other
public official (e.g., the sheriff) will proceed against the assets of the
judgment debtor. Assets that can be seized include all types of personal
property and real property, subject to legislative limitations that protect
the judgment debtor from being left destitute as a result. If the judgment is
not fully satisfied, it remains on the books and can be enforced later if the
judgment debtor’s financial circumstances change.

PTS: 1 DIF: Medium REF: 89 BLM: Remember

6. What are advantages and disadvantages of having electronic data as part

of the documentary evidence in a lawsuit?

ANS:
Electronic documents can be very useful in that they can be easier to
access, organize, and distribute. However, it can also be very challenging
to locate electronic documents that may be relevant as well as to control
them.

PTS: 1 DIF: Easy REF: 85 BLM: Remember

7. Identify and briefly describe matters that will influence the best courses of
action a business may choose to take with respect to dispute resolution.
Include an indication of the key element involved in approaching this
process.

ANS:
 The best courses of action with respect to the approach a business should
take to dispute resolution will be influenced by the following:
i) the objectives each party has in relation to a particular dispute
ii) the attitudes of the parties: are they interested in a resolution or in
making a point?
iii) the amount of money that is at stake
iv) the resources the parties are prepared to devote to the dispute
v) risk analysis and cost-benefit analysis of prolonging the dispute
vi) the nature of the relationship between the parties

The key is to adopt and follow a rational approach to dispute resolution

and to avoid litigation, if at all possible.

PTS: 1 DIF: Medium REF: 91 BLM: Remember

8. Identify the stages of a lawsuit and briefly describe the parties who would
typically be involved.

ANS:
There are four stages of a lawsuit:
i) pleadings
ii) discovery
iii) trial and decision
iv) enforcement

The parties typically involved in a lawsuit are the plaintiff, who is the party
initiating the lawsuit against another party, and the defendant, the party
being sued.

PTS: 1 DIF: Easy REF: 84 BLM: Remember