You work as a salesperson at a technology services company. During your five years of employment, you have generated more sales revenue than all of your fellow salespeople. You have received positive annual reviews and accolades during your time with the company. Three months ago, a new manager was hired to supervise the sales staff. When authorized to promote two salespeople to a better paid position, the new manager bypassed you and selected two salespeople who have been poor performers. You think it is because of your race that you did not get the promotion. You want to sue your company in court, but signed a mandatory arbitration clause in your employment contract. Discuss whether the arbitration clause is enforceable and whether you can challenge the arbitration award if it is not in your favor.

Question

Business

Tristian Dillon

23 February, 18:45

You work as a salesperson at a technology services company. During your five years of employment, you have generated more sales revenue than all of your fellow salespeople. You have received positive annual reviews and accolades during your time with the company. Three months ago, a new manager was hired to supervise the sales staff. When authorized to promote two salespeople to a better paid position, the new manager bypassed you and selected two salespeople who have been poor performers. You think it is because of your race that you did not get the promotion. You want to sue your company in court, but signed a mandatory arbitration clause in your employment contract. Discuss whether the arbitration clause is enforceable and whether you can challenge the arbitration award if it is not in your favor.

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Answers (1)

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Kylie David · Answer 1

The answer is below

Explanation:

Yes, arbitration clause is enforceable. Arbitration is one of the alternative dispute resolution methods (ADR). it involves an agreement between parties to a contract, who has agreed to seek for redress outside normal court in case any forms if disputes arise during the contract. It is a legally binding agreement which is enforceable in a court of law.

Also, in a situation whereby the decision of n arbitrator is not favourable, it cannot be challenged. It is a common knowledge that, generally, the decision of arbitration is final and cannot be appealed. Hence, any party who do not like the decision of arbitration, or believe they are unfair, generally cannot get a higher authority to consider the case again, unlike normal court.