Cengage Advantage Books: Foundations of the Legal Environment of Business 3rd Edition by Marianne Jennings

تمرين 4

Ophthalmologists Lewis Frazee and Robert Selkin formed American Laser Vision (ALV), which opened laser vision correction centers in Texas and Oklahoma. ALV signed contracts with The Laser Vision Institute (LVI) to have LVI operate the eye centers by providing management, nonmedical staff, and equipment and ALV would provide the surgeons. LVI was to pay ALV a fee for each surgery performed. The contract required that any disputes would be submitted to arbitration.
After a few months, Dr. Selkin complained about the LVI staff, quit performing surgeries at LVI, and began doing surgeries at other clinics in other states. Dr. Selkin bought out Frazee's interest in ALV and then filed an arbitration claim against LVI for $4,000,000 in lost surgery fees and other damages. After a three-day hearing, the arbitrator awarded Dr. Selkin $1.8 million. LVI filed suit to have the award set aside because the arbitrator failed to recognize that Dr. Selkin was in breach, was making money elsewhere, and never gave LVI a chance to deal with staff issues. What is the court most likely to do with the case?
a. The court will send the case back to the arbitrator for a new hearing to consider the factors LVI has raised in its suit.
b. The court will find in favor of LVI and dismiss the arbitration award.
c. The court will dismiss the suit and allow the arbitration award to stand.
d. The court will require the arbitrator to award the full $4 million to ALV.