[Jade Shoes] Coleman owns a sporting goods store and has purchased top-quality, brand-name athletic shoes from Jade's Shoe Distribution for many years, but they have no written contract in place. Last month, Coleman learned that the latest shipment from Jade's are not authentic, brand-name shoes but instead a knock-off brand that costs a fraction of the price Coleman pays. Coleman cannot sell these shoes because his customers would know the difference, and Coleman demanded Jade refund him. Jade sent Coleman a written request for arbitration within thirty days. In response, Coleman called Jade, threatening to file a lawsuit against Jade and exposing her company as a fraud. Jade laughs, saying Coleman is required to arbitrate their dispute within thirty days.
-Is Jade correct that they are required to arbitrate their dispute?
A) Yes, Jade demanded in writing that they arbitrate their dispute.
B) Yes, but only because Jade's written demand had a thirty day deadline.
C) No, a party is never required to arbitrate.
D) No, arbitration is voluntary and Coleman never signed an agreement to arbitrate their disputes.
E) No, a party cannot enter a contract that requires them to arbitrate instead of filing a lawsuit.

Question

Quizplus · Accepted Answer

Arbitration is a process that parties must agree to, usually through a contract. Since Coleman and Jade have no written contract that includes an arbitration agreement, Coleman is not obligated to arbitrate the dispute despite Jade's request.

[Jade Shoes] Coleman Owns a Sporting Goods Store and Has