AIBE 21 Alternative Dispute Resolution MCQs with Answers

Alternative Dispute Resolution (ADR) is one of the most important topics for AIBE 21 because it covers arbitration, mediation, conciliation, and key legal principles frequently asked in exam-based MCQs. This section helps candidates understand how disputes are resolved outside traditional courts and how legal concepts are applied in practical scenarios.

AIBE 21 Alternative Dispute Resolution MCQs

Below are important AIBE 21 ADR MCQs with options and conceptual clarity for better revision and exam preparation.

1. Which of the following correctly distinguishes conciliation from mediation under Indian law?

A. Mediation results in an automatically enforceable decree
B. Conciliator actively proposes settlement terms, unlike a traditional mediator
C. Mediation is governed exclusively by the Arbitration and Conciliation Act
D. Conciliation proceedings are always public in nature
Correct Answer: B

2. Which judgment recognized the doctrine of minimal judicial interference in arbitration?

A. Keshavananda Bharati Case
B. BALCO vs Kaiser Aluminium
C. ADM Jabalpur Case
D. Vishaka Guidelines
Correct Answer: B

3. Which of the following is NOT a form of ADR?

A. Mediation
B. Arbitration
C. Conciliation
D. Litigation
Correct Answer: D

4. In arbitral proceedings, parties and tribunal can do what?

A. Arrange for the settlement of the case
B. Provide legal aid
C. Arrange administrative assistance through a suitable institution/person
D. Arrange reconciliation in the matter
Correct Answer: C

5. Nemo judex in causa sua means what?

A. No man is capable of judging his own case
B. No man shall be the judge in his own cause
C. No man can punish himself
D. Justice only by a related judge
Correct Answer: B

6. On what basis can an arbitral award be set aside under Section 34?

A. Error of fact by arbitrator
B. Re-appreciation of evidence by court
C. Grounds specifically enumerated in statute
D. Dissatisfaction of parties
Correct Answer: C

7. Which is NOT considered an essential attribute of arbitration?

A. Binding decision
B. Neutral adjudicator
C. Judicial officer must preside compulsorily
D. Party autonomy
Correct Answer: C

8. Arbitration tribunal means what?

A. Only panel of arbitrators
B. Sole arbitrator or panel of arbitrators
C. More than one arbitrator is compulsory
D. Sole arbitrator only
Correct Answer: B

9. Language of arbitral proceedings depends on what?

A. Court decision
B. Party autonomy / party agreement
C. Statutory fixed language
D. Tribunal discretion only
Correct Answer: B

10. When does mandate of an arbitrator terminate?

A. Withdrawal without reason
B. Failure to act without undue delay
C. Incapacity to perform functions
D. All of the above
Correct Answer: D

11. Section 89 CPC relates to what?

A. Arbitration reference to ADR
B. Criminal procedure
C. Evidence law
D. Appeals
Correct Answer: A

12. Seat of arbitration determines what?

A. Substantive law
B. Procedural law governing proceedings
C. Evidence rules
D. Party contract terms
Correct Answer: B

13. Lok Adalat is constituted under which Act?

A. Legal Services Authorities Act
B. Arbitration and Conciliation Act
C. CPC
D. CRPC
Correct Answer: A

14. Which ADR method is most suitable for preserving relationships?

A. Arbitration
B. Mediation
C. Litigation
D. Trial
Correct Answer: B

15. Which disputes are NOT suitable for ADR?

A. Serious allegations cases
B. Civil disputes
C. Commercial disputes
D. Family disputes
Correct Answer: A

16. Principle preventing parties from re-arguing after participation without objection?

A. Res judicata
B. Estoppel
C. Waiver
D. Lis pendens
Correct Answer: B

17. Competence-competence principle implies what?

A. Court decides jurisdiction
B. Arbitrator decides its own jurisdiction
C. Parties waive jurisdiction
D. Arbitration is institutional always
Correct Answer: B

18. Mediation settlement agreement becomes binding when?

A. Notarised
B. Signed by parties
C. Approved by court only
D. Automatically appealable
Correct Answer: B

19. Arbitration clause survives even if main contract is challenged due to?

A. Severability doctrine
B. Territoriality principle
C. Eclipse doctrine
D. Harmonious construction
Correct Answer: A

20. Arbitration in India generally is:

A. Replacement of courts
B. Supplement to judicial system
C. Only for commercial disputes
D. Non-binding mechanism
Correct Answer: B