MindTap Business Law, 1 term (6 months) Printed Access Card for Cross/Miller's The Legal Environment of Business: Text and Cases, 10th (MindTap Course List)
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Chapter 2, Problem 4BCP
Summary Introduction

Case Summary: A person, BM, played football for the company, TT. He entered into a contract with the company, TT. A provision of the contract laid down that in the wake of a dispute, the same would be submitted for arbitration. Both the parties agreed that the arbitration would be governed by Tennessee law.

To Find: The authority of the court to set aside or affirm arbitrator’s award.

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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.
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