[Jade Shoes] Coleman Owns a Sporting Goods Store and Has

question 62

Multiple Choice

[Jade Shoes] Coleman owns a sporting goods store and has purchased top-quality, brand-name athletic shoes from Jade's Shoe Distribution for many years, but they have no written contract in place. Last month, Coleman learned that the latest shipment from Jade's are not authentic, brand-name shoes but instead a knock-off brand that costs a fraction of the price Coleman pays. Coleman cannot sell these shoes because his customers would know the difference, and Coleman demanded Jade refund him. Jade sent Coleman a written request for arbitration within thirty days. In response, Coleman called Jade, threatening to file a lawsuit against Jade and exposing her company as a fraud. Jade laughs, saying Coleman is required to arbitrate their dispute within thirty days.
-Which of the following is true for both arbitrations and trials?

• A) The decision of a judge is legally binding, but the decision of an arbitrator is not.
• B) Cross-examination of witnesses occurs in trials, but not in arbitrations.
• C) Parties are required to have a lawyer in both arbitrations and trials.
• D) The parties may introduce witnesses and documentation, may cross-examine witnesses, and may offer closing statements.
• E) Closing statements are not permitted during arbitration.

---

Definitions:

Accrual Basis

An accounting method that records revenues and expenses when they are earned or incurred, regardless of when the cash transaction happens.

Revenue Recognition

The accounting principle that determines the specific conditions under which revenue is recognized and recorded in the financial statements.

Revaluation Surplus

An increase in the value of an asset that is reflected in the books of accounts, primarily through a revaluation process.

Cash-Basis Expenses

Expenses recorded when cash is actually paid out, under the cash basis of accounting, as opposed to the accrual basis which recognizes expenses when they are incurred.