Case Summary: A person S purchased a video security system using a smartphone from the company named T, located in another state. The system arrived after one month from the projected delivery date. Further, the system was not functioning as it was advertised and was of poor quality. S filed a lawsuit against the company T in the state court. The state in which S resides requires the dispute between S and the company T to be submitted to nonbinding arbitration or mediation.
To Explain: The ability of the court to hear the lawsuit in case the dispute between S and the company T is not resolved or in case either of the parties disagrees with the decision provided by the arbitrator or mediator.
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Chapter 2 Solutions
The Legal Environment of Business: Text and Cases
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