Weigh Benefits & Drawbacks of a Resolution - Next Generation Bar Exam
- What is a principal drawback of mediation?
- It may not produce a resolution. Because mediation is non-binding, the dispute may continue to litigation.
- What is a principal drawback of binding arbitration?
- Very limited judicial review of the award. Under the Federal Arbitration Act, awards may be vacated only on narrow grounds such as fraud or arbitrator misconduct.
- What is a drawback of a general release for a plaintiff?
- It bars claims the plaintiff may later discover arising from the released events. A narrower release preserves unrelated or unknown claims.
- What is a principal benefit of a consent judgment over a private settlement agreement?
- It is enforceable through the court's contempt power. A private settlement is enforceable only through a separate contract action, unless the court retains jurisdiction.
- A plaintiff with a strong claim against a nearly insolvent defendant is offered a modest immediate settlement. What is the principal benefit of accepting?
- Assured recovery from a defendant who may be unable to pay a judgment. A large judgment against an insolvent defendant may be uncollectible.
- What is a principal benefit of mediation?
- The parties control the outcome and may craft creative solutions. A mediator facilitates but does not impose a decision.
- What is a principal benefit of arbitration compared with litigation?
- Faster and more private resolution. Arbitration typically involves less discovery and no public record.
- A client who wants to preserve a long-term supply relationship is offered a choice between litigation and mediation. What is the principal benefit of mediation for this client?
- It is more likely to preserve the business relationship. Mediation is collaborative and less adversarial than litigation.
- What is a drawback of a confidentiality provision for a defendant facing similar claims?
- It may not prevent discovery in later cases. Courts may order production of confidential settlements in appropriate circumstances.
- What is a principal drawback of settlement for a plaintiff with a strong claim?
- Accepting less than a likely trial recovery. The plaintiff trades potential upside for certainty.
- What is a principal benefit of settlement compared with trial?
- Certainty of outcome. Settlement removes the risk of an adverse verdict.
- What is a drawback of a structured settlement for a plaintiff?
- The risk that the payor will become unable to make later payments. Security, such as an annuity or guarantee, can reduce this risk.