Fact Pattern 3-2 Sally Tells You That She Is in a Dispute with a Dispute

question 22

Multiple Choice

Fact Pattern 3-2
Sally tells you that she is in a dispute with her employer regarding whether in denying Sally a promotion she wanted, the employer committed sex discrimination. Sally says that she has heard about both mediation and arbitration and asks you which would result in a quicker judgment in her favor because she does not particularly want to go to the time and expense of a court action. Sally also asks if, as a friend, you will go with her when she consults with a lawyer.
-Refer to fact pattern 3-2. What would you tell Sally regarding whether she should choose mediation or arbitration?

• A) That mediation and arbitration are essentially the same thing.
• B) That a mediator would actually decide the case whereas an arbitrator would not.
• C) That an arbitrator would actually decide the case whereas a mediator would not.
• D) That both an arbitrator and a mediator would decide the case but that an arbitrator is required to be a lawyer whereas a mediator is not.

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Definitions:

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing its interest expenses to its earnings before interest and taxes.

Interest Expense

The cost incurred by an entity for borrowed funds.

Debt/Equity Ratio

A financial metric showing the balance between the amount of equity provided by shareholders and the debt incurred to support a company's assets.

Cost of Borrowing

The total expense incurred by an entity for borrowing funds, including interest payments, fees, and other charges.