Q.1 Which of the following is NOT a form of Alternative Dispute Resolution (ADR)?
Mediation
Arbitration
Conciliation
Imprisonment
Explanation - ADR involves voluntary settlement methods like mediation, arbitration, and conciliation. Imprisonment is a criminal punishment, not ADR.
Correct answer is: Imprisonment
Q.2 Arbitration is primarily characterized by:
Binding decision by a neutral party
Voluntary negotiation
Court judgment
Community voting
Explanation - Arbitration results in a binding award given by an arbitrator, unlike mediation or negotiation.
Correct answer is: Binding decision by a neutral party
Q.3 In mediation, the mediator’s role is to:
Impose a decision
Assist parties in reaching a settlement
Punish the guilty party
Act as a judge
Explanation - Mediators facilitate communication and negotiation but do not impose decisions.
Correct answer is: Assist parties in reaching a settlement
Q.4 Which ADR method is most commonly used in commercial disputes?
Arbitration
Mediation
Conciliation
Litigation
Explanation - Arbitration is widely favored in commercial disputes for its binding decisions and enforceability.
Correct answer is: Arbitration
Q.5 Which legislation governs arbitration in India?
Civil Procedure Code, 1908
Indian Contract Act, 1872
Arbitration and Conciliation Act, 1996
Evidence Act, 1872
Explanation - The Arbitration and Conciliation Act, 1996 governs arbitration and conciliation in India.
Correct answer is: Arbitration and Conciliation Act, 1996
Q.6 Conciliation differs from mediation mainly because:
Conciliator can suggest solutions
Mediator imposes binding decision
Conciliation is a criminal process
Mediation involves arbitration
Explanation - A conciliator plays a more proactive role than a mediator by suggesting settlement terms.
Correct answer is: Conciliator can suggest solutions
Q.7 ADR is considered beneficial mainly because:
It delays resolution
It is less formal and cost-effective
It replaces all courts
It only benefits one party
Explanation - ADR provides quicker, cheaper, and more flexible resolution compared to litigation.
Correct answer is: It is less formal and cost-effective
Q.8 An arbitral award is:
A suggestion
A binding decision
A mediation note
A police order
Explanation - An arbitral award is binding and enforceable in court.
Correct answer is: A binding decision
Q.9 Lok Adalat in India is an example of:
Arbitration
Mediation
Statutory ADR mechanism
Court trial
Explanation - Lok Adalats are statutory forums established for speedy and cost-effective dispute resolution.
Correct answer is: Statutory ADR mechanism
Q.10 Which is the key principle of ADR?
Adversarial approach
Mutual consent
Judicial hierarchy
Penal sanction
Explanation - ADR processes rely heavily on the voluntary participation and consent of the parties.
Correct answer is: Mutual consent
Q.11 What is the role of an arbitrator?
Enforce laws
Negotiate settlement
Hear evidence and make binding award
Act as a mediator
Explanation - An arbitrator hears both sides and issues a binding decision, similar to a private judge.
Correct answer is: Hear evidence and make binding award
Q.12 Mediation is especially effective in:
Family disputes
Criminal trials
Tax assessment
Election disputes
Explanation - Mediation works best in cases where preserving relationships is important, like family disputes.
Correct answer is: Family disputes
Q.13 Which international body promotes arbitration?
World Bank
International Chamber of Commerce (ICC)
United Nations Security Council
Interpol
Explanation - The ICC plays a leading role in international arbitration by providing rules and support.
Correct answer is: International Chamber of Commerce (ICC)
Q.14 Negotiation in ADR is unique because:
It involves a judge
It requires legal statutes
It is directly between parties
It always results in binding award
Explanation - Negotiation is the simplest ADR method, where parties communicate directly to settle disputes.
Correct answer is: It is directly between parties
Q.15 In arbitration, the agreement between parties is called:
Arbitral award
Arbitration agreement
Settlement deed
Contract of conciliation
Explanation - An arbitration agreement binds parties to resolve disputes through arbitration.
Correct answer is: Arbitration agreement
Q.16 Which is faster and cheaper: litigation or ADR?
Litigation
ADR
Both are equal
Depends on country
Explanation - ADR is generally less costly and quicker compared to lengthy litigation processes.
Correct answer is: ADR
Q.17 Which of the following is binding by default?
Mediation
Negotiation
Arbitration
Conciliation
Explanation - Arbitration awards are legally binding, unlike mediation or negotiation outcomes.
Correct answer is: Arbitration
Q.18 UNCITRAL deals with:
Trade law and arbitration rules
Human rights violations
Criminal law treaties
Environmental law
Explanation - UNCITRAL promotes harmonization of international trade law, including arbitration frameworks.
Correct answer is: Trade law and arbitration rules
Q.19 Which is an advantage of ADR?
Expensive
Time-consuming
Confidential
Public hearing
Explanation - ADR often ensures privacy, unlike court proceedings which are usually public.
Correct answer is: Confidential
Q.20 In India, Lok Adalats are governed by:
Constitution of India
Legal Services Authorities Act, 1987
Civil Procedure Code
Indian Penal Code
Explanation - The Legal Services Authorities Act, 1987 provides statutory recognition to Lok Adalats.
Correct answer is: Legal Services Authorities Act, 1987
Q.21 Which ADR method allows parties maximum control over the outcome?
Arbitration
Mediation
Litigation
Judicial review
Explanation - In mediation, parties voluntarily decide the outcome, unlike arbitration where the arbitrator decides.
Correct answer is: Mediation
Q.22 The decision of Lok Adalat is:
Advisory
Binding and final
Subject to appeal
Merely a suggestion
Explanation - Decisions of Lok Adalats are binding and cannot be appealed in a regular court.
Correct answer is: Binding and final
Q.23 Which ADR method is compulsory in family courts before trial?
Negotiation
Mediation
Conciliation
Arbitration
Explanation - Family courts often mandate conciliation to preserve family relationships.
Correct answer is: Conciliation
Q.24 Which is a key limitation of ADR?
Informal procedures
Limited enforceability in some cases
Faster resolution
Cost-effectiveness
Explanation - ADR outcomes like mediation agreements may need court enforcement if not voluntary.
Correct answer is: Limited enforceability in some cases
Q.25 Which of these is NOT an advantage of arbitration?
Confidentiality
Binding award
Flexibility
Guaranteed appeal
Explanation - Arbitral awards are final and not usually subject to appeal, unlike court judgments.
Correct answer is: Guaranteed appeal