Non-Arbitration Variations Class 1

Administration Give quiz Return quizzes at end Collect critiques Return critiques at end Final Exam - Everybody needs to be sure which quizzes they missed Final exam quiz strategy

Review There are problems in the use of arbitration FOA, Repeated Offer Selection and Cost-Formula Arbitration are all techniques designed to address those problems and there are others But these all have problems of their own

Today Why Non-Arbitration Variations Divide and Choose techniques Key Ideas from Today’s Class

I. Why Non-Arbitration Variations? What do all the arbitration variations share? In terms of the three criteria? Someone else makes the decision if the parties can’t This fact impacts all of the prior negotiations Is there a way to encourage the disputants to make their own decisions Remove the third party entirely

II. Divide and Choose Children’s variation Trivial in case of single dimension ice cream Only one set of interests here and they overlap, more of the ice cream Suppose there are two dimensions, vanilla and chocolate Suppose there are even more dimensions? What happens then? What role do you prefer to play?

II. Divide and choose The business dissolution problem The issue How can this be resolved using a divide and choose technique?

II. Divide and Choose How can this technique be used in a marital dissolution situation? Would you include child custody issues in the divide and choose procedure? Why or why not?

III: Key Ideas from Today’s Class Advantage of non-arbitration dispute resolution techniques Divide and choose approaches

Next Time Technique based on the strike but no one stops working

Non-Arbitration Variations Class 2

Administrative Return quizzes Return critiques Reminder – final exam 9:00 AM, Monday May 14 I have grade book with me today

Review Divide and choose technique Depends on problem having multiple dimensions so interests are not the same Can be used to resolve some business and personal disputes

Today Virtual Strike – Definition Virtual Strike – Issues and Variations A variation for commercial disputes Auctions Key Ideas from Today’s Class

I. Virtual Strike - Definition Other names Statutory Strike Non-stoppage Strike Similar in Concept to Cost-Formula Arbitration Also similar to collective bargaining with strikes Replace strike costs with financial costs Example

II. Virtual Strikes – Issues and Variations What happens to the extra money? What happens if some employees don’t want to strike? Can the percentage of wage cost be altered and by whom?

III. A Variation for Commercial Disputes How could this be modified for a commercial dispute (e.g. one company claims another provided defective goods)? Would companies be likely to agree to this? Why or why not?

IV. Auctions What is the interest and what is the strategy of the bidder in an auction? What is the interest and what is the strategy of the seller? Is there a better way for both?

V:Key Ideas from Today’s Class Virtual Strike Variations of auctions

Next Time Conclusions Discussion of final exam