CCNP Dispute Resolution 2

Question 1

In contract disputes, what does the term 'reservation of rights' typically allow a party to do?

Accepted Answer

Preserve legal rights while continuing to perform under the contract

Answer

A reservation of rights lets a party continue performing while preserving the right to assert claims or defenses later, preventing inadvertent waiver.

Question 2

Which dispute resolution clause feature ensures that parties must attempt negotiation before proceeding to arbitration or litigation?

Accepted Answer

Escalation clause

Answer

An escalation clause requires parties to pursue progressively higher levels of negotiation or management review before invoking formal dispute resolution.

Question 3

When a mediator proposes a specific settlement figure and asks both parties to accept or reject it confidentially, this technique is called:

Accepted Answer

Mediator's proposal

Answer

A mediator's proposal is a technique where the mediator suggests a specific settlement amount and both parties independently decide whether to accept without revealing the other's answer unless both agree.

Question 4

Under the Federal Arbitration Act (FAA), which of the following grounds is recognized for vacating an arbitration award?

Accepted Answer

The award was procured by fraud or corruption

Answer

The FAA allows courts to vacate awards procured by fraud, corruption, or evident partiality—not merely because the arbitrator made a legal error.

Question 5

In dispute resolution, a 'baseball arbitration' or 'final offer arbitration' requires the arbitrator to:

Accepted Answer

Select exactly one party's final offer without modification

Answer

In final offer (baseball) arbitration, the arbitrator must choose one party's exact final number, incentivizing both sides to make reasonable proposals.

(CCNP) Certified Contract Negotiation Professional Practice Test

(CCNP) Certified Contract Negotiation Professional Practice Test

CCNP Dispute Resolution 2