Question 1: What does 'confirmation of an arbitral award' mean under US law?

• A court converts the arbitral award into a court judgment enforceable by court mechanisms (Correct answer)
• The arbitrator re-reads the award at a public hearing
• The award is registered with the AAA
• The parties sign a consent decree

Correct answer: A court converts the arbitral award into a court judgment enforceable by court mechanisms

Confirmation under FAA Section 9 allows a party to have an arbitral award entered as a judgment of the court, making it enforceable through court enforcement mechanisms.

Question 2: What is 'document-only arbitration' (also called 'desk arbitration')?

• Arbitration where all documents must be submitted as hard copies only
• Arbitration where only documentary evidence (no witnesses) is admissible
• An arbitration format used only for small claims under $5,000
• Arbitration resolved entirely on written submissions without an oral hearing (Correct answer)

Correct answer: Arbitration resolved entirely on written submissions without an oral hearing

Document-only or desk arbitration is resolved purely on written submissions and documentary evidence without a live hearing, reducing time and costs for simpler disputes.

Question 3: What does 'hot-tubbing' (concurrent expert evidence) involve in arbitration?

• Off-the-record settlement discussions
• Simultaneous submission of written briefs
• Joint deposition of party representatives
• Witnesses testifying simultaneously and being cross-examined together (Correct answer)

Correct answer: Witnesses testifying simultaneously and being cross-examined together

Hot-tubbing involves expert witnesses from both sides testifying at the same time, enabling direct comparison and cross-examination of competing opinions.

Question 4: What distinguishes 'interest arbitration' from 'rights arbitration' in the public sector labor context?

• Interest arbitration establishes new contract terms; rights arbitration interprets and applies existing contract terms (Correct answer)
• Interest arbitration applies only to private sector; rights arbitration to public sector
• Interest arbitration is voluntary; rights arbitration is always mandatory
• Interest arbitration involves monetary claims; rights arbitration involves non-monetary claims

Correct answer: Interest arbitration establishes new contract terms; rights arbitration interprets and applies existing contract terms

Interest arbitration creates new terms for a collective bargaining agreement when parties cannot negotiate, while rights arbitration (grievance arbitration) resolves disputes about existing contract language.

Question 5: Under the New York Convention (1958), what is required for an arbitral award to be enforceable in a signatory country?

• The dispute must involve more than $1 million
• The award must be made in writing and signed by the arbitrators in a country that is party to the Convention (Correct answer)
• Both parties must be corporations
• The award must be approved by the seat country's Supreme Court

Correct answer: The award must be made in writing and signed by the arbitrators in a country that is party to the Convention

The New York Convention requires that the award be in writing, signed by the arbitrators, and rendered in a Convention signatory state to qualify for enforcement.

Question 6: What role does the 'administering institution' play in managing arbitration scheduling?

• The institution has no role in scheduling once arbitrators are appointed
• The institution schedules all hearings and issues all procedural orders directly
• The institution facilitates communication, coordinates appointments, and provides administrative support, but the tribunal manages substantive scheduling (Correct answer)
• The institution dictates exact hearing dates and times to arbitrators

Correct answer: The institution facilitates communication, coordinates appointments, and provides administrative support, but the tribunal manages substantive scheduling

Institutions like AAA and ICC provide administrative support and coordinate logistics, but the arbitral tribunal retains authority over substantive scheduling and procedural decisions.

Question 7: What is the key difference between arbitration and mediation?

• In both, the mediator makes a binding decision.
• Mediation is always more expensive than arbitration.
• Arbitration is informal, whereas mediation is formal.
• Arbitration involves a neutral third party making decisions, while mediation involves the parties deciding.

The key difference lies in the decision-making authority: in arbitration, a neutral third party (the arbitrator) hears evidence and makes a binding decision that the parties must follow. In mediation, a neutral third party (the mediator) facilitates communication and helps the parties negotiate to reach their own voluntary agreement, without imposing a decision.

Question 8: What does 'expedited procedures' under AAA Commercial Rules mean for cases below a certain threshold?

• Parties waive the right to any discovery
• All cases automatically go to a single arbitrator with limited discovery and a shortened schedule (Correct answer)
• The entire arbitration is conducted by written submissions only with no hearing
• Cases are automatically resolved within 24 hours

Correct answer: All cases automatically go to a single arbitrator with limited discovery and a shortened schedule

AAA Expedited Procedures apply to smaller claims and provide for a single arbitrator, simplified document exchange, and compressed timelines to reduce costs and time.

Question 9: What is the role of arbitration agreements in dispute resolution?

• They are optional and not enforceable.
• They are binding contracts that specify arbitration as the resolution method. (Correct answer)
• They are only used for international disputes.
• They can be modified at any time during arbitration.

Correct answer: They are binding contracts that specify arbitration as the resolution method.

Arbitration agreements are legally binding contracts where parties agree to resolve any future disputes through arbitration rather than litigation. These agreements are enforceable in courts and dictate the specific method by which disagreements will be settled. They are a crucial component in ensuring that parties adhere to the agreed-upon dispute resolution process.

Question 10: What is the ethical responsibility of a mediator when a party is not participating voluntarily?

• To ensure that the process is voluntary and fair, and stop if a party is not participating voluntarily. (Correct answer)
• To force the non-participating party to participate.
• To proceed with the process regardless of the party’s participation.
• To allow one party to dominate the process.

Correct answer: To ensure that the process is voluntary and fair, and stop if a party is not participating voluntarily.

A core ethical principle of mediation is voluntariness; parties must willingly participate for the process to be effective and fair. If a mediator determines that a party is not participating voluntarily, they have an ethical responsibility to address this, potentially by pausing or terminating the mediation. Forcing participation undermines the integrity of the process and the likelihood of a sustainable resolution.

Question 11: What is 'interest on an arbitral award' and how is it typically handled?

• Interest must equal the federal funds rate
• Interest is never awarded in arbitration
• Interest can only be awarded if both parties agree
• Arbitrators have discretion to award pre- and post-award interest based on the applicable law and circumstances (Correct answer)

Correct answer: Arbitrators have discretion to award pre- and post-award interest based on the applicable law and circumstances

Arbitrators generally have discretion to award pre-award interest (from the date of breach) and post-award interest (from the award date until payment), guided by applicable law.

Question 12: Which type of witness statement is typically exchanged before a hearing in international commercial arbitration?

• Grand jury testimony
• Notarized affidavits filed with a court
• Written witness statements submitted in advance (Correct answer)
• Oral deposition transcripts

Correct answer: Written witness statements submitted in advance

International arbitration typically requires parties to exchange written witness statements before the hearing, which then serve as direct testimony.

Question 13: What is 'spoliation' in the context of arbitral evidence?

• The intentional destruction or alteration of relevant evidence (Correct answer)
• Deliberate submission of forged documents
• Disclosing confidential settlement offers
• Filing duplicate claims in multiple forums

Correct answer: The intentional destruction or alteration of relevant evidence

Spoliation refers to the destruction, alteration, or concealment of evidence relevant to a dispute, which can lead to sanctions including adverse inferences.

Question 14: Under AAA Commercial Arbitration Rules, how are filing fees generally calculated?

• Per arbitration day actually used
• A percentage of the final award amount
• Based on a sliding scale tied to the amount of the claim (Correct answer)
• A flat fee of $500 regardless of claim size

Correct answer: Based on a sliding scale tied to the amount of the claim

AAA filing fees are calculated on a sliding scale based on the amount in controversy, with higher claim amounts resulting in higher initial filing fees.

Question 15: What is the significance of a 'broad' arbitration clause versus a 'narrow' one?

• A broad clause allows either party to litigate while a narrow clause mandates arbitration
• A broad clause covers all disputes arising out of or relating to the contract, while a narrow clause limits arbitration to specific types of disputes (Correct answer)
• A broad clause requires international arbitration while a narrow clause allows domestic proceedings
• A broad clause eliminates discovery while a narrow clause permits full discovery

Correct answer: A broad clause covers all disputes arising out of or relating to the contract, while a narrow clause limits arbitration to specific types of disputes

Broad clauses use language like 'arising out of or relating to' and sweep in virtually all disputes, whereas narrow clauses restrict arbitration to specific, enumerated claims.

Question 16: What is the typical basis for arbitrator compensation in commercial arbitration?

• A percentage of the damages awarded
• An hourly or daily rate negotiated or set by institutional rules (Correct answer)
• Pro bono service required by professional licensing
• A fixed government-set rate per case

Correct answer: An hourly or daily rate negotiated or set by institutional rules

Arbitrators are typically compensated at hourly or daily rates, either agreed directly with parties or set according to the administering institution's guidelines.

Question 17: In technology and IP arbitration, what makes these disputes particularly suited for arbitration over litigation?

• Arbitration is faster and always cheaper than litigation in technology cases
• Technology disputes are excluded from federal court jurisdiction
• The ability to select arbitrators with specialized technical expertise and maintain confidentiality of trade secrets (Correct answer)
• Technology disputes always involve international parties requiring the New York Convention

Correct answer: The ability to select arbitrators with specialized technical expertise and maintain confidentiality of trade secrets

Technology and IP arbitration allows parties to select arbitrators with specialized technical expertise and protect confidential trade secrets and proprietary information from public court records.

Question 18: In a multi-party arbitration, how are arbitral awards typically structured when different parties have different claims?

• The award specifies liability and damages for each claim and each party separately (Correct answer)
• A single award covers all parties uniformly
• The tribunal issues separate awards for each bilateral pair
• Only the claimant receives an award; respondents do not

Correct answer: The award specifies liability and damages for each claim and each party separately

In multi-party arbitrations, the award typically addresses each party's claims and counterclaims separately, specifying who owes what to whom.

Question 19: Under the Federal Arbitration Act (FAA), what is the arbitrator's authority regarding document production?

• Arbitrators must follow federal civil discovery rules exactly
• Arbitrators may summon witnesses and compel production of documents under Section 7 (Correct answer)
• Arbitrators have no authority to compel document production
• Arbitrators can only request documents voluntarily submitted

Correct answer: Arbitrators may summon witnesses and compel production of documents under Section 7

FAA Section 7 authorizes arbitrators to summon witnesses and compel the production of documents material to the dispute.

Question 20: Which concept limits the scope of document production requests in arbitration to avoid 'fishing expeditions'?

• Collateral estoppel
• Forum non conveniens
• Proportionality (Correct answer)
• Res judicata

Correct answer: Proportionality

Proportionality requires that document requests be balanced against their relevance, importance, and the burden of production.

Question 21: Which federal statute governs labor arbitration arising from collective bargaining agreements in the US?

• Labor Management Relations Act (LMRA) Section 301 (Correct answer)
• National Labor Relations Act
• Federal Arbitration Act
• Railway Labor Act only

Correct answer: Labor Management Relations Act (LMRA) Section 301

LMRA Section 301 provides federal jurisdiction for suits to enforce collective bargaining agreements, and federal common law governs labor arbitration under this statute.

Question 22: What does 'authentication' of evidence mean in arbitration proceedings?

• Filing evidence with a domestic court
• Translating foreign-language documents
• Establishing that a document is what it purports to be (Correct answer)
• Having a document notarized by a public official

Correct answer: Establishing that a document is what it purports to be

Authentication means demonstrating that a piece of evidence is genuine and is what it claims to be, typically through witness testimony or circumstantial evidence.

Question 23: What does the 'English rule' (fee-shifting) regarding costs mean in international arbitration?

• English law governs all international arbitration cost disputes
• All arbitration hearings must be conducted in English
• The losing party typically pays the prevailing party's legal fees and arbitration costs (Correct answer)
• ICC arbitration administered from London follows different cost rules

Correct answer: The losing party typically pays the prevailing party's legal fees and arbitration costs

The English rule on costs means the unsuccessful party pays the successful party's legal fees and arbitration costs, which is the default in many international arbitrations.

Question 24: What is a 'reasoned award' in arbitration?

• An award that includes the arbitrator's factual findings and legal reasoning (Correct answer)
• An award based solely on settlement negotiations
• An award that can be appealed to a court of appeals
• An interim award pending final resolution

Correct answer: An award that includes the arbitrator's factual findings and legal reasoning

A reasoned award includes the arbitrator's explanation of the factual findings and legal basis for the decision, as opposed to a bare award that simply states the outcome.

Question 25: What does 'class action waiver' in an arbitration agreement mean?

• A waiver of the right to appeal class certification decisions
• A clause preventing parties from bringing or participating in class action claims, requiring individual arbitration (Correct answer)
• A waiver allowing a party to bring claims as a class in arbitration
• A provision waiving arbitration fees for class members

Correct answer: A clause preventing parties from bringing or participating in class action claims, requiring individual arbitration

A class action waiver in an arbitration agreement requires each claimant to arbitrate individually rather than collectively, which the US Supreme Court upheld in AT&T Mobility v. Concepcion.

Question 26: Under ICSID (International Centre for Settlement of Investment Disputes) rules, how is an award enforced?

• Through a separate UN enforcement protocol
• ICSID awards are directly enforceable as if they were final judgments of the domestic courts of each member state (Correct answer)
• ICSID awards require Security Council approval before enforcement
• Through the New York Convention enforcement mechanism

Correct answer: ICSID awards are directly enforceable as if they were final judgments of the domestic courts of each member state

Under the ICSID Convention, member states are required to recognize and enforce ICSID awards as if they were final domestic court judgments, bypassing the need for a separate enforcement proceeding.

Question 27: What is 'franchise arbitration' and why do franchisors typically prefer it?

• Arbitration required by the FTC for all franchise agreements
• Arbitration to resolve trademark disputes between franchises
• Government arbitration of franchise license applications
• Mandatory arbitration of franchisee disputes with franchisors, often preferred by franchisors for consistency and confidentiality (Correct answer)

Correct answer: Mandatory arbitration of franchisee disputes with franchisors, often preferred by franchisors for consistency and confidentiality

Franchise arbitration resolves disputes between franchisors and franchisees, with franchisors preferring it for confidentiality, consistency across their system, and avoiding jury trials.

Question 28: What is 'employment arbitration' under the Federal Arbitration Act following the Supreme Court's ruling in Epic Systems Corp. v. Lewis (2018)?

• Individual employment arbitration agreements with class action waivers are unenforceable
• Class arbitration is always available regardless of the agreement
• Individual employment arbitration agreements with class action waivers are generally enforceable under the FAA (Correct answer)
• Employment disputes are excluded from FAA coverage entirely

Correct answer: Individual employment arbitration agreements with class action waivers are generally enforceable under the FAA

In Epic Systems (2018), the Supreme Court held that employment arbitration agreements requiring individual arbitration and waiving class actions are enforceable under the FAA.

Question 29: What is 'correction of an award' in arbitration?

• Reopening the merits of the dispute
• Substituting a new arbitrator to reconsider the decision
• Fixing clerical, typographical, or computational errors without reconsidering the substance (Correct answer)
• Appealing the award to a higher arbitral body

Correct answer: Fixing clerical, typographical, or computational errors without reconsidering the substance

Correction of an award allows the tribunal to fix non-substantive errors such as typos or calculation mistakes without revisiting the merits of the decision.

Question 30: What is 'third-party funding' in arbitration and what disclosure obligations does it raise?

• When arbitrators are paid by the parties equally; disclosed in the arbitral award
• When a party's insurer covers defense costs; disclosed only to the arbitral institution
• When a law firm fronts client costs to be repaid from the award; no disclosure required
• When an external funder finances a party's arbitration costs in exchange for a share of proceeds; may require disclosure to check for arbitrator conflicts (Correct answer)

Correct answer: When an external funder finances a party's arbitration costs in exchange for a share of proceeds; may require disclosure to check for arbitrator conflicts

Third-party funding involves commercial funders financing arbitration costs for a portion of the recovery, raising disclosure obligations so arbitrators can identify potential conflicts of interest.