Alternative Dispute Resolution Is an Increasingly Popular Alternative to Litigation

question 39

Multiple Choice

Alternative dispute resolution is an increasingly popular alternative to litigation because:

• A)judges are generally perceived as out of touch with community values.
• B)lawyers seek to make the courtroom less accessible to aspiring litigants.
• C)the depiction of the courtroom in popular television has discouraged potential litigants.
• D)it is generally cheaper, faster, more private and less stressful than going to court.

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Definitions:

Annual Lease

A contract or agreement stipulating the rental terms of a property for one year, often specifying the rent amount, payment schedules, and other conditions.

Minimum Efficient Scale

The smallest level of production at which long-term average total costs are minimized.

Natural-Monopoly Situation

A market condition in which a single firm can produce output at a lower cost than can multiple firms, leading to a monopoly justified by efficiencies of scale.

Implicit Costs

The opportunity costs that arise from using resources that a business already owns rather than earning revenue from those resources elsewhere.