CCNP Mediation 4 — Questions and Answers
Question 1: Which mediation approach is most appropriate when parties in a contract dispute have an ongoing business relationship they wish to preserve?
- Transformative mediation (Correct answer)
- Adjudicative mediation
- Evaluative mediation
- Summary jury trial mediation
Correct answer: Transformative mediation
Transformative mediation focuses on empowering parties and improving their interaction, making it ideal when preserving a long-term relationship is a priority.
Question 2: Under the Singapore Convention on Mediation (2019), what type of agreements can be directly enforced by signatory states?
- International settlement agreements resulting from mediation of commercial disputes (Correct answer)
- Domestic consumer contract settlements only
- Any settlement reached without a mediator present
- Settlement agreements ratified by a United Nations arbitration panel
Correct answer: International settlement agreements resulting from mediation of commercial disputes
The Singapore Convention allows parties to invoke and enforce international commercial settlement agreements reached through mediation directly before courts of signatory states.
Question 3: A mediator notices that one party appears to be agreeing to unfavorable terms due to intimidation by the other party. The mediator should:
- Continue without intervening to preserve neutrality
- Terminate mediation or take steps to address the power imbalance (Correct answer)
- Rule in favor of the weaker party to restore balance
- Disclose the intimidation to the opposing party's counsel
Correct answer: Terminate mediation or take steps to address the power imbalance
Mediators have an ethical obligation to address significant power imbalances that undermine the voluntary and informed nature of any agreement reached.
Question 4: The 'bracketing' technique in contract mediation involves:
- Each party simultaneously proposing a high and low settlement range to find an overlapping zone (Correct answer)
- Sequentially excluding unacceptable terms from a draft agreement
- Requiring parties to submit written position statements before each session
- Assigning monetary values to non-monetary interests in the contract
Correct answer: Each party simultaneously proposing a high and low settlement range to find an overlapping zone
Bracketing has parties propose paired numbers (e.g., plaintiff demands $X, defendant offers $Y) to identify a midpoint zone where settlement may be possible.
Question 5: Which clause in a contract most directly triggers mandatory mediation before litigation?
- Force majeure clause
- Escalation clause requiring mediation as a condition precedent to arbitration or litigation (Correct answer)
- Liquidated damages clause
- Indemnification clause
Correct answer: Escalation clause requiring mediation as a condition precedent to arbitration or litigation
An escalation or tiered dispute resolution clause requires parties to attempt mediation before escalating to arbitration or court, making mediation a contractual prerequisite.
Question 6: Which of the following is a key advantage of mediation over litigation for resolving contract disputes?
- Mediation always produces a legally binding result without further action
- Mediation is conducted publicly to establish legal precedent
- Mediation typically preserves confidentiality and offers faster resolution (Correct answer)
- Mediation allows either party to compel discovery of all documents
Correct answer: Mediation typically preserves confidentiality and offers faster resolution
Mediation is generally faster, less expensive, and confidential compared to litigation, making it attractive for parties seeking to resolve disputes efficiently.
Question 7: A settlement agreement reached in mediation is best made enforceable by:
- Recording the mediator's verbal summary on tape
- Having the parties sign a written settlement agreement during or immediately after the mediation session (Correct answer)
- Filing the mediator's notes with the American Arbitration Association
- Obtaining the mediator's notarized certification of the agreement
Correct answer: Having the parties sign a written settlement agreement during or immediately after the mediation session
A signed written settlement agreement is the standard mechanism for making a mediated resolution legally binding and enforceable as a contract.
CCNP Mediation 4
Which mediation approach is most appropriate when parties in a contract dispute have an ongoing business relationship they wish to preserve?