[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.
-When addressing which tips would be helpful in creating a binding arbitration clause, the text authors suggest what?
A) The clause should treat both parties as if they understand the law and should be signed in front of a notary.
B) The clause should always dictate that the arbitration will be performed in a certain location so that both parties know.
C) The clause should be bilateral, clear, state which party pays the fees, and specify how the arbitrator will be selected.
D) The clause should allow that if the arbitration award is not approved by both parties, the parties can then mediate the dispute instead.
E) The clause should always limit the remedies the parties can receive.

Question

Quizplus · Accepted Answer

The correct answer is C because a binding arbitration clause should be bilateral (applying equally to both parties), clear in its terms, specify who pays for the arbitration fees, and detail the method for selecting an arbitrator. These elements ensure that the arbitration process is fair and understood by both parties involved.

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