Question 1

Laredo applies for a job with Marketing Inc.Like most employers,Marketing informs Laredo that &#34;any claim relating to this application or employment shall be settled by&#8203;&#10;A)arbitration.&#34;&#10;B)class action.&#34;&#10;C)collective decision making.&#34;&#10;D)individual lawsuits,not class action.&#34;

Accepted Answer

By choosing arbitration, any disputes between the employee and employer will be settled outside of court, which can be faster and less expensive than traditional litigation. It also typically prohibits class action lawsuits, which can be costly and risky for employers.

Question 2

Window Glass Company,like other businesses,has in interest in staying in business.From this perspective,with respect to resolving disputes through arbitration,individual litigation,and class actions,Window is ethically required to

A)curb a bad practice.
B)engage in harmful conduct.
C)exhaust its assets to litigate or settle a case.
D)generate fees for lawyers.

A

Accepted Answer

Window Glass Company is ethically required to curb bad practices and resolve disputes in a fair and just manner because the primary objective is to maintain a stable and trustworthy business. Engaging in harmful conduct or generating fees for lawyers does not align with ethical principles. Exhausting assets to litigate or settle a case may not be feasible or economically sound for the company.

Question 3

Eduardo applies for credit with Freeway Auto Sales Ltd.Freeway informs Eduardo that "any claim arising from this deal must be resolved through mandatory arbitration." Through this clause,Freeway will most likely avoid all of the following except

A)a lengthy resolution process.
B)engaging in individual arbitration.
C)responding to a class action.
D)settling a groundless claim.

B

Accepted Answer

B

Question 4

Cell Service Corporation pads all of its customers' bills with an unexpected fee,adding up to millions in profit for Cell at a small expense for each individual customer.In this situation,the customers could most affordably fight this charge by

A)bringing individual lawsuits.
B)engaging in individual arbitration.
C)filing a class action.
D)taking their case to the state legislature.

Accepted Answer

Filing a class action lawsuit would allow all customers who were affected by Cell Service Corporation's unexpected fee to join together and fight the charge as a group. This would likely be more cost-effective and efficient than each customer bringing an individual lawsuit or engaging in individual arbitration, which could take up significant time and resources. Taking the case to the state legislature may not be as effective, as it may be difficult to pass legislation specifically targeting Cell Service Corporation's business practices.

Deck 32: Application and Ethics:“Arbitration, no Class Actions”