PAPER 2026 STUDY GUIDE REVIEW
◉ The Uniform Arbitration Act is intended to: Answer: encourage
and facilitate the resolution of civil actions through arbitration,
rather than a court case.
◉ One of the most common uses of independent arbitration is the
resolution of disputes between: Answer: contractors and customers.
◉ Contractors may be forced to seek a legal remedy when: Answer:
payment is not received, not paid in full, or not paid in a timely
manner.
◉ A customer may seek legal remedy when the terms of payment
are believed to be: Answer: excessive, reflect unforeseen charges or
cost overruns, or when there is a dispute as to whether the work
done meets the standards of the contract.
◉ The reason for the Uniform Arbitration Act is because legal
redress through the courts: Answer: • imposes great costs to the
community as well as to the litigants
• often takes far longer
,• has the potential for damages awarded by a jury that may
bankrupt one or more parties
◉ In order to streamline, make more predictable, and encourage
arbitration as an alternative to a court case, the Uniform Arbitration
Act lays out: Answer: the procedures, rights, and responsibilities
involved in arbitration.
◉ The Uniform Arbitration Act requires appropriate notice to:
Answer: all interested parties of the intent to seek resolution
through arbitration.
◉ One or more parties may refuse to join in an arbitration hearing,
in which case: Answer: only a judge may bind all cases to the
independent arbitration.
◉ Even after an arbitration is resolved, any party who continues to
feel damaged may: Answer: nevertheless seek legal redress through
the courts.
◉ Usually, a complaint is filed with the: Answer: Michigan Bureau of
Professional Licensing (BPL).
◉ If the BPL believe a complaint has violated the Occupational Code,
they may submit a formal complaint to a procedural process, and
, then assign the ______ to conduct an administrative hearing. Answer:
Michigan Administrative Hearing System (MAHS)
◉ At an administrative hearing: Answer: • A representative of the
Bureau and the licensee may present testimony and evidence to
support their sides
• The original complainant is not a party to the proceedings, unless
invited to testify
• The MAHS then compiles a Hearing Report, which includes
Findings of Fact and Conclusions of Law
• The Board makes a Final Decision or Order using the Hearing
Report.
◉ Notable differences between a court hearing and independent
arbitration Answer: 1. The costs of hiring an arbitrator are borne by
the participants.
2. Attorneys are not required; neither may any side be denied being
represented by an attorney.
3. The award may or may not reflect the damages sought. Punitive
damages may be added, at the discretion of the arbitrator. There
may, however, be a limit on total potential damages to be awarded.
◉ Michigan passed the Civil Rights Act in: Answer: 1885