CHAPTER 14
MCQ
Section 14 Overview
1. Which of the
following is a purely voluntary method of dispute resolution?
a) Litigation
b) Arbitration
c) Mediation
d) Negotiation
Answer: d) Negotiation, because no forcing
Confusing
40.Which of the following is not an advantage of
negotiation?
A)The parties control the process.
B)It is less costly than mediation, arbitration, or
litigation.
C)It ensures final resolution of the dispute.
D)No party is forced to live with a result which it did not
agree to
Correct Answer: It ensures final resolution of the dispute.
If the parties are unable to reach agreement, the dispute
will not be resolved.
2. In
litigation, what happens if a defendant fails to participate in the process?
a) The case is dismissed
b) Judgment is awarded against the non-participant
c) The case moves to arbitration
d) The court orders mediation
Answer: b) Judgment is awarded against the non-participant
3. When is
arbitration voluntary?
a) During the resolution of a dispute
b) Only after a dispute arises
c) During the contract negotiation phase
d) Arbitration is never voluntary
Answer: c) During the contract negotiation phase
Because in that phase any party can refuse to accept the
inclusion of an arbitration
4. What is the
key difference between arbitration and mediation?
a) Mediation is binding, while arbitration is not
b) Arbitration is binding, while mediation is not
c) Arbitration involves a judge, while mediation does not
d) Mediation is always court-ordered, while arbitration is not
Answer: b) Arbitration is binding, while mediation is not.
Because in mediation party can still refuse to settle the dispute
5. What happens
if a plaintiff in litigation chooses not to pursue a claim?
a) The case is dismissed with judgment against the plaintiff
b) The defe ndant is still required to appear in court
c) The plaintiff simply does not recover anything
d) The case moves to mediation
Answer: c) The plaintiff simply does not recover anything
6. If a contract
does not contain an arbitration clause, can the parties still opt for
arbitration?
a) No, arbitration requires a pre-existing clause
b) Yes, arbitration is always an option if parties agree
c) Only if the court mandates it
d) Only if mediation fails first
Answer: b) Yes, arbitration is always an option if parties
agree
7. Which dispute
resolution method is mandatory for a defendant in litigation?
a) Negotiation
b) Mediation
c) Arbitration
d) Litigation
Answer: d) Litigation
55. The parties want a private adjudicator whose decision is binding and faster than court.
Which process best fits?
A. Mediation
B. Negotiation
C. Arbitration
D. Small claims
Ans. C
Why?
The correct answer is: C. Arbitration
Explanation:
· Arbitration involves a private adjudicator (the arbitrator) who hears the case and issues a binding decision.
· It is typically faster, more efficient, and more confidential than court proceedings.
· This matches all elements in the question: private + binding + faster than court.
Why not the others?
· A. Mediation → Facilitated discussion; the mediator does not impose a binding decision.
· B. Negotiation → Informal discussion between parties; no third-party decision-maker.
· D. Small claims → Still part of the court system, not private.
This is a classic ADR (Alternative Dispute Resolution) question—when you see binding + private decision-maker, think arbitration immediately.
56. An owner and consultant want help settling a dispute but
want to retain control over the outcome.
Which process is most suitable?
A. Litigation
B. Mediation
C. Appeal
D. Summary trial
The correct answer is: B. Mediation
Explanation:
· Mediation involves a neutral third party (mediator) who helps facilitate discussion, but does not impose a decision.
· The parties retain full control over the outcome, which is exactly what the question emphasizes.
· Any agreement reached is voluntary and mutually accepted.
Why not the others?
· A. Litigation → A judge makes the decision; parties lose control.
· C. Appeal → A higher court reviews a prior decision; still no control over outcome.
· D. Summary trial → A simplified court process; decision is still imposed by a judge.
Key NPPE takeaway:
· Control over outcome → Mediation
· Binding third-party decision → Arbitration
57. An engineer is asked to testify as an expert witness.
What is the expert’s primary duty?
A. To the retaining
client only
B. To assist the court impartially
C. To maximize the client’s recovery
D. To avoid contrary opinions
Ans. B
58. A dispute involves highly technical delay analysis and
multiple parties. The process chosen should balance speed, cost, and expertise.
Which chapter theme is engaged?
A. Dispute
resolution method selection
B. Criminal charging
C. Registration reciprocity
D. Privacy consent
Ans. A
