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    Electric City, a discount retailer with over 500 employees, includes a clause in its employment application stating that all future employment disputes will be resolved through binding arbitration. This clause most likely:

    a) will be considered valid by federal courts.
    b) will be unenforceable in federal courts.
    c) will result in employees having to mediate their employment-related claims against Electric City.
    d) will require an employee to mediate employment-related disputes.

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    Solution Preview

    Answer (a) is incorrect.

    Although (a) has some truth to it, it is not the best answer. Let's look at the definitions for arbitration and binding arbitration. Arbitration: any of the forms of dispute resolution involving a mutually acceptable neutral third party making a decision on the merits of the case, after an informal hearing which usually includes the presentation of evidence and oral argument. The process has four main variations (creating numerous permutations):
    · binding or non binding
    · voluntary or compulsory
    · private, statute authorized, court-annexed (alternatively termed court-connected)
    . one arbitrator or a panel

    For example, in Ontario, all arbitrations, whether private, court-annexed or ...

    Solution Summary

    This solution provides the best response to one multiple choice question on employment law, including a rationale for the best answer.