An ADR Contract Clause

question 12

Multiple Choice

An ADR contract clause:

• A)must specify the ADR technique that the parties will use in the event of a dispute.
• B)can merely state that the parties have the option of using an ADR technique.
• C)prohibits the parties from resorting to litigation to settle an issue.
• D)requires that the parties follow all ADR procedures with a summary trial.

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Definitions:

Elasticity

A measure of how much the demand or supply of a product changes in relation to a change in one of its determinants like price.

Hedge Ratio

A ratio used to reduce financial risk, representing the proportion of a position hedged to the total position size.

Hedge Ratio

The ratio used to manage risk in financial portfolios, determining the size of a position required to offset potential losses.

Dollar Exposure

The extent to which a company or investment is affected by changes in the US dollar value, particularly in foreign exchange risk.