Question:
The process by which disputing parties can reach agreement outside of the court system is
Answer
- Alternative Dispute Resolution (ADR)
Explanation:
Alternative Dispute Resolution (ADR) is the process by which disputing parties can reach agreement outside the court. The process is reviewed by courts in some cases to validate the method used but most ADR decisions are upheld by courts. Most disputing parties use ADR because it is less expensive than litigation, and expeditious and private. Two major forms of ADR includes mediation and arbitration. Mediation involves a neutral party who brings the disputing parties together to try and work out an agreement. Arbitration is decided by a panel of arbitral, or a single arbitrator as the parties agree. Other common means includes negotiation where the two parties control the whole process of coming up with a solution that serves their interest equally, and conciliation.
Question:
The text discusses that the drafters of the Uniform Commercial Code had several purposes in mind. Which of the following was NOT one of those purposes?
Group of answer choices
Creates a body of rules that would realistically and fairly solve common problems occurring in everyday commercial transactions.
Protect the innocent consumer from fraudulent activity in the marketplace.
Establish a uniform set of rules to govern commercial transactions.
Formulate rules that would promote fair dealing and higher standards in the marketplace
Answer
- Protect the innocent consumer from fraudulent activity in the marketplace.
Explanation:
The Uniform Commercial Code was established in 1952 and the drafters create it for several purposes. It contains 9 articles and the most important one is artice 2 because it deals with sales of goods.
There were three main purposes for establishment of UCC, there were:
- To come up with a set of uniform commercial rules that would govern commercial transactions conducted across states.
- To establish realistic and fair rules which would help solve common problems that occur in various commercial transactions on daily basis.
- To formulate rules that would bring order and fairness in the marketplace as well as promoting higher standards in the market.
Although all of these purposes on minds of drafters would better protect consumers and also sellers, it is not stated that they had in their minds, the purpose of protecting innocent consumers from fraudulent activity in the marketplace because when there is fairness, order, and rules to solve issues arising from commercial dealings, all market players would be protected.
