Paralegal Certification PrepLegal Terminology and ConceptsEasy
A paralegal is reviewing a client's employment contract. The contract includes a clause stating that any disputes arising from the employment must be resolved through binding arbitration rather than litigation in court. The paralegal understands this clause is an example of:
- ALitigation
- BDiscovery
- CMediation
- DArbitration
Show answer & explanationAnswer & explanation
Correct answer: D. Arbitration
Arbitration is a form of alternative dispute resolution where a neutral third party (the arbitrator) hears evidence and makes a binding decision, distinct from court litigation.
Why the other options are wrong
- A. Litigation refers to the process of resolving disputes in a court of law.
- B. Discovery is the pre-trial process of exchanging information between parties in a lawsuit.
- C. Mediation involves a neutral third party facilitating a settlement, but the decision is not binding.
Arbitration
A form of alternative dispute resolution (ADR) in which a dispute is submitted to one or more impartial third persons (arbitrators) for a decision, which is often legally binding.
- Often contractually agreed upon.
- Faster and less formal than litigation.
- Decision is typically binding and difficult to appeal.
Memory trick: ADR offers options to avoid court's long reports.