The Legal Environment of Business: Text and Cases
10th Edition
ISBN: 9781337535878
Author: Frank B. Cross; Roger LeRoy Miller
Publisher: Cengage Learning US
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Chapter 2, Problem 2IS
Summary Introduction
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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Students have asked these similar questions
Teresa and Kensington enter into an employment contract that contains an unenforceable arbitration clause. Teresa
sues Kensington, but Kensington wants the contract to remain effective. How can the court rule that the contract is
still valid?
a. If the contract contains an integration clause, the court may delete the unenforceable clause and enforce
the rest of the contract.
b. If the contract contains boilerplate, the court may delete the unenforceable clause and enforce the rest of
the contract.
C. If the contract contains a severability clause, the court may delete the unenforceable clause and enforce
the rest of the contract.
d. If the contract contains representations and warranties, the court may delete the unenforceable clause and
enforce the rest of the contract.
Tim and Kristen work together in College Station, Texas. Tim mentions
that he is selling his car and Kristen offers to buy it. When Kristen gets
the car, the air conditioning doesn't work. Kristen says, "The deal is off."
Tim responds, "No, we had a contract."
If the parties do not want to go to court, but they would like a third-party
to be involved, what form of alternative dispute resolution (ADR) could
they use?
O Arbitration
Mediation
O Negotiation
Either Arbitration or Mediation
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Marleen was employed by Acme, Inc. When she accepted the job, as part of her compensation package, she agreed that any dispute between her and Acme would be resolved through non-binding arbitration. When Marleen was passed over for promotion three times, she alleged that Acme violated her civil rights and initiated arbitration proceedings. If either party disagrees with the decision of the arbitrator, will a court hear the case?
a.
Yes, because here arbitration is non-binding.
b.
No, because the purpose of arbitration is to reduce the number of cases heard by a judge.
c.
Yes, because arbitration is disfavored in that it deprives plaintiffs of their day in court.
d.
No, because the agreement to arbitrate was contractual and included an agreement to abide by the arbitrator’s decision.
Chapter 2 Solutions
The Legal Environment of Business: Text and Cases
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