Chapter 16 Scenario questions

. Distempers PLC is a paint company. It is in dispute with one of its suppliers Admiralty Limited regarding the quality of some raw ingredients, supplied by Admiralty to Distemper to manufacture paint. The contract between the companies states that any dispute should be settled by arbitration. At the arbitration, the arbitrator refused to listen to any witnesses from Distemper and informed the parties it was an open and shut case. He decided the dispute in favour of Admiralty. Which one of the following statements is correct?

Distempers can appeal the decision of the arbitrator.

The arbitrator's word is final and there is no scope for appeal.

The only route open to Distempers is an appeal under the Arbitration Act 1996.

An appeal can only take place if Admiralty agree.

. Jessica is a solicitor and a partner in a medium sized provincial firm. She acts for a large commercial client Bodega Limited which is in dispute with one of its suppliers, Hoyson Limited. Hoyson have suggested mediation. Bodega is not keen on the idea of mediation. Which of the following is correct?

Mediation is only suitable for divorce cases.

Contractual claims are very suitable for mediation.

Arbitration is the only ADR method suitable for contractual disputes.

Bodega do not have to consider ADR at all, never mind mediation – they can go straight to court.

. Despite Jessica's advice, Bodega decided to ignore Hoyson's invitation to try mediation and they pursue the dispute to trial. At the trial Bodega wins. Bodega is delighted and applies to the court for its costs from Hoyson. Which of the following is correct?

The fact that Bodega have ignored an offer to mediate is of no consequence – they won at trial and will be entitled to their costs and will have to pay nothing to Hoyson.

It is highly likely that Bodega will have to pay some of Hoyson's costs if they failed to respond to the invitation to enter into mediation.

One of the factors that the court will consider, when deciding whether Bodega unreasonably refused to consider mediation is whether Bodega was willing to pay the mediator's fees.

After the judgment, the court decides whether to impose cost sanctions for a failure to mediate. The burden of proof falls on the winning party (Bodega) to prove that there was a realistic prospect of mediation being a success.

. Javinder is in dispute with his neighbour about a right of way between his property and his neighbour's land. Javinder is keen to settle the matter before he puts the property up for sale. His solicitor has suggested ADR (mediation). Which of the following is true?

It is likely that the process will be quick. It will also be confidential.

ADR is not suitable for property disputes.

ADR is only suitable for divorce proceedings.

If the dispute is mediated everyone in the street will know and it is likely to be reported in the local newspapers.

. Rajeev is a famous singer; he is in dispute with the five members of his band over record royalties. He wishes to move on with his career and launch himself as a solo artist. His solicitor has suggested mediation. Which of the following is correct?

Rajeev should agree to mediation because he will be granted legal aid and it will therefore the proceedings will not cost him.

Rajeev should not agree to mediate because he will be on his own against the five members of his band.

Rajeev believes that the mediator will be unable to grasp the complexities of the recording industry and therefore will be unable to assist to settle the dispute.

Mediation proceedings are confidential. This would be an ideal way to keep the dispute out of the newspapers

Quiz Content