ADR Settlement Agreement Drafting 3

Question 1

What must a settlement agreement involving a minor's claims typically include to be enforceable?

Accepted Answer

Court approval of the settlement terms

Answer

Most U.S. jurisdictions require court approval (a 'minor's compromise') to bind a minor to a settlement agreement.

Question 2

In an employment discrimination settlement, which federal law requires the drafter to include specific ADEA waiver language for employees over 40?

Accepted Answer

Older Workers Benefit Protection Act (OWBPA)

Answer

The OWBPA mandates specific disclosures and a 21-day consideration period plus 7-day revocation right for ADEA waivers by employees 40 and older.

Question 3

A settlement agreement requires the defendant to take specific actions (e.g., remove a fence). Which type of relief does this represent?

Accepted Answer

Injunctive relief

Answer

Injunctive relief requires a party to perform or refrain from specific acts, as opposed to monetary compensation.

Question 4

Which provision in a settlement agreement specifies that any disputes about the agreement itself will be resolved through arbitration?

Accepted Answer

Dispute resolution clause

Answer

A dispute resolution clause designates the method (e.g., arbitration, mediation) for handling future disagreements about the settlement agreement's terms.

Question 5

When drafting a class action settlement agreement, the agreement must receive what type of approval before binding absent class members?

Accepted Answer

Federal Rule 23(e) court approval

Answer

FRCP Rule 23(e) requires court approval and notice to class members before a class action settlement can bind absent class members.

(ADR) Alternative Dispute Resolution Certification Practice Test

(ADR) Alternative Dispute Resolution Certification Practice Test

ADR Settlement Agreement Drafting 3