Lena Receives Notice of a Lawsuit That Indicates the Suit

question 60

Multiple Choice

Lena receives notice of a lawsuit that indicates the suit is in the federal district court. She has heard about the Alternative Dispute Resolution Act and has been told she is required by law to use a form of ADR before she goes to court. Is this true?

• A) Yes, Lena must agree to mediation which is required by law in all federal district courts.
• B) Yes, Lena must agree to arbitration which is required by law in all federal district courts.
• C) Yes, Lena could pick either mediation or arbitration because some form of ADR is required by law in federal district court.
• D) Under the act, Lena must consider the use of ADR, but courts are not uniform in their implementation of the act.
• E) No, Lena is not bound to follow ADR and can go straight to trial and cannot be forced into any ADR process by law.

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Definitions:

Flexible Budgets

Financial plans that can be adjusted or modified to take into account changes in volume of operations or activity levels, allowing for more accurate budgeting.

Manufacturing Overhead

This includes all the indirect costs involved in manufacturing a product, such as utilities, depreciation, and salaries of supervisors.

Budgeted Costs

Estimated expenses for future periods, used for planning and controlling financial resources.

Idle Plant Assets

Fixed assets that are not currently in use for production, operations, or providing services, often due to reduced demand or operational changes.