ADR Reasons, Types and Choice

Question 1

What is the main advantage of mediation over litigation?
A. It is confidential and flexible
B. The mediator can impose a decision
C. It is always legally binding
D. It allows parties to resolve disputes privately while preserving relationships

Answer 1

D. It allows parties to resolve disputes privately while preserving relationships
Explanation: Mediation is non-binding and confidential, making it ideal for preserving ongoing relationships in a less adversarial environment.

Question 2

What distinguishes expert appraisal from expert determination?
A. Expert appraisal provides a non-binding opinion
B. Expert appraisal involves a court-appointed evaluator
C. Expert determination is not used in contractual disputes
D. Expert determination produces a binding decision enforceable between the parties

Answer 2

D. Expert determination produces a binding decision enforceable between the parties
Explanation: The key difference is that expert determination results in a binding decision, while expert appraisal does not.

Question 2

Which form of ADR results in a binding decision made by an expert in the subject matter?
A. Expert determination
B. Early neutral evaluation
C. Mediation
D. Arbitration

Answer 2

A. Expert determination
Explanation: Expert determination leads to a binding decision, often used in technical disputes where legal arguments are not central.

Question 3

Which of the following is not generally an advantage of ADR over litigation?
A. Guaranteed enforceability across all jurisdictions
B. Greater confidentiality
C. Lower cost in suitable cases
D. Increased party control over the process

Answer 3

A. Guaranteed enforceability across all jurisdictions
Explanation: Only arbitration has enforceability advantages under international treaties. Other ADR forms do not have guaranteed enforcement mechanisms.

Question 4

Two business partners are in dispute but wish to keep costs low, preserve their working relationship, and avoid public proceedings. Which ADR method is most appropriate?
A. Mediation
B. Arbitration
C. Expert determination
D. Negotiation

Answer 4

D. Negotiation
Explanation: Negotiation is informal, cost-effective, and entirely within the parties’ control, making it suitable for ongoing business relationships.

Question 5

A dispute involves a complex engineering matter. Both sides want a quick, binding decision without court involvement. Which ADR method is most appropriate?
A. Expert determination
B. Mediation
C. Early neutral evaluation
D. Arbitration

Answer 5

A. Expert determination
Explanation: Expert determination is suitable where specialist technical knowledge is key and a binding decision is required.

Question 6

A party wants a final, enforceable decision made by a legally trained person outside the courts. Which option best suits their needs?
A. Arbitration
B. Early neutral evaluation
C. Mediation
D. Expert appraisal

Answer 6

A. Arbitration
Explanation: Arbitration provides a binding and enforceable outcome, often by a legally trained arbitrator, and is a formal alternative to court.

Question 7

In which scenario would expert appraisal be most helpful?
A. Where the parties want a non-binding neutral opinion to guide negotiations
B. Where the parties want a legally enforceable decision
C. Where technical evidence must be given under oath
D. Where the outcome is intended to be final without appeal

Answer 7

A. Where the parties want a non-binding neutral opinion to guide negotiations
Explanation: Expert appraisal is non-binding and advisory, helping parties assess the strength of their positions without finality.

Question 8

A client is involved in a claim that would cause reputational harm if heard in open court. It involves a disagreement about a past conversation between senior managers. Both sides want to restore their relationship. What is the best ADR method?
A. Arbitration
B. Mediation
C. Expert determination
D. Litigation

Answer 8

B. Mediation
Explanation: Mediation offers confidentiality, space to explore sensitive issues, and can help restore working relationships.

Question 9

A party refused to engage in ADR before litigation, believing it would fail. The court later ruled in favour of the other party and imposed cost sanctions. Why?
A. The refusing party was not legally represented
B. The court always awards costs against the losing party
C. The refusing party acted unreasonably in ignoring ADR
D. ADR is mandatory in all civil claims

Answer 9

C. The refusing party acted unreasonably in ignoring ADR
Explanation: Courts expect ADR to be reasonably considered. Failure to do so can lead to adverse cost consequences under CPR.

Question 10

A commercial contract dispute involves international parties and complex jurisdictional issues. Privacy and enforceability are key. What process is most appropriate?
A. Mediation
B. Arbitration
C. Conciliation
D. Negotiation

Answer 10

B. Arbitration
Explanation: Arbitration allows enforceability across jurisdictions via the New York Convention and ensures privacy.

Question 11

A client receives an early neutral evaluation in a contractual dispute. The outcome is not in their favour, but they believe the evaluator misunderstood the facts. What can they do?
A. Appeal the evaluation
B. Ask the evaluator to reconsider
C. Ignore it, as it is not binding
D. Apply to court for judicial review

Answer 11

C. Ignore it, as it is not binding
Explanation: ENE is non-binding and cannot be appealed or enforced. It serves only to guide parties in negotiations.