Asked by Fatma Khalid on Jul 26, 2024

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What effect will the provision that the arbitration be conducted in the company's home state have on the agreement?

A) None; only because an employee/employer relationship is involved.
B) None because Ari freely signed the agreement.
C) None because a domestic company, not an international one, is involved.
D) A court will be unlikely to enforce the agreement only if it can be proven that Ari did not read the agreement before he signed it.
E) A court may be more likely to not enforce the agreement because of the distance and expense involved.

Arbitration Clause

A provision within a contract that requires parties to resolve disputes through arbitration rather than litigation, allowing for potentially quicker and less formal legal proceedings.

Independent Contracting

A working relationship where an individual provides services to a business under terms specified in a contract, without being an employee of the business.

  • Evaluate the enforceability of arbitration provisions in various situations, encompassing employment and consumer agreements.
  • Differentiate between mediation and arbitration and understand situations where each is applicable.
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AW
Avery WeznerJul 30, 2024
Final Answer :
E
Explanation :
A court may find the provision requiring arbitration to be conducted in the company's home state (California) to be unconscionable if it imposes undue hardship on Ari, who is based in Florida, especially considering the costs and logistical challenges involved in traveling for the arbitration. This could make the agreement less likely to be enforced.