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Employment Law

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.

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.