Victor signs an arbitration agreement providing that he will arbitrate any disputes with his employer, Business Corp. Victor believes that Business Corp. has discriminated against him in violation of the Americans with Disabilities Act. The EEOC also investigated the situation and brought an action against Business Corp. alleging that Business Corp. discriminated against Victor in violation of the Americans with Disabilities Act. What is the effect of the arbitration clause in regards to the action brought by the EEOC?
A) The arbitration clause is enforceable and binding on the EEOC.
B) The arbitration clause is enforceable and binding on the EEOC only if Business Corp. provided the EEOC with a copy of the agreement before the suit was filed.
C) The arbitration clause is enforceable and binding on the EEOC only if Victor is the only employee in the company who has allegedly been discriminated against under the Americans with Disabilities Act.
D) The arbitration clause is not binding on the EEOC.
E) The EEOC can avoid the arbitration clause only if it can show that it prosecuted Business Corp in the past and that Business Corp. is a repeat offender.

Question

Quizplus · Accepted Answer

The arbitration clause between Victor and Business Corp. is not binding on the EEOC because the EEOC is a federal agency that enforces civil rights laws against workplace discrimination and is not a party to the private arbitration agreement between an employer and an employee.

Victor Signs an Arbitration Agreement Providing That He Will Arbitrate