Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 14

Ripton Co. manufacturer of security devices, contracted with DAT Security Co., wholesalers of security equipment for businesses, to produce 500 wall safes to certain specification. The parties to the contract clearly stated in advance to be bound by the decision of the arbitrator if there was disagreement over the terms of the contract. Upon completion of the contract requirements, Ripton complained that the wall safes did not conform to specifications and filed a lawsuit in the appropriate trial court. The court refused to hear the case and ordered the parties to arbitration.
Questions
1. Can arbitration substitute for a court trial?
2. Was the court wrong in ordering the parties to arbitration in this case?
3. Would it be fair to enforce the arbitration clause in this contract?