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Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts
Edition 11ISBN: 978-1133587576Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts
Edition 11ISBN: 978-1133587576 Exercise 23
Is It Fair to Mandate an Arbitration Clause?
FACTS Delivery drivers at Figaro's Pizza Factory drive their own car in making deliveries. Their hourly wages range from the legal minimum wage to approximately $0.50 above minimum wage. Figaro's Pizza Factory reimburses them at a fixed rate of $0.80 per delivery regardless of the number of miles driven or actual expenses incurred. All drivers are required to sign an arbitration agreement that states (1) any dispute that the parties are unable to resolve informally will be submitted to binding arbitration before an arbitrator selected from a panel of a designated arbitration service and approved by both parties; (2) the parties give up the right to a jury trial; (3) the arbitration fees will be borne by Figaro's Pizza Factory and, except as otherwise required by law, each party will bear its own attorneys' fees and costs; (4) small claims may be resolved by a summary small claims procedure; and (5) the parties give up the right to bring class arbitration. In actuality, the arbitration provider designated by Figaro's Pizza Factory includes only one arbitrator.
Social, Policy, and Ethical Considerations
Do the terms of this agreement appear fair and reasonable to both parties?
FACTS Delivery drivers at Figaro's Pizza Factory drive their own car in making deliveries. Their hourly wages range from the legal minimum wage to approximately $0.50 above minimum wage. Figaro's Pizza Factory reimburses them at a fixed rate of $0.80 per delivery regardless of the number of miles driven or actual expenses incurred. All drivers are required to sign an arbitration agreement that states (1) any dispute that the parties are unable to resolve informally will be submitted to binding arbitration before an arbitrator selected from a panel of a designated arbitration service and approved by both parties; (2) the parties give up the right to a jury trial; (3) the arbitration fees will be borne by Figaro's Pizza Factory and, except as otherwise required by law, each party will bear its own attorneys' fees and costs; (4) small claims may be resolved by a summary small claims procedure; and (5) the parties give up the right to bring class arbitration. In actuality, the arbitration provider designated by Figaro's Pizza Factory includes only one arbitrator.
Social, Policy, and Ethical Considerations
Do the terms of this agreement appear fair and reasonable to both parties?
Explanation
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Case summary:
In the given case, the et...
Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts
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