Assume the parties do agree to mandatory arbitration. The final draft of the Agreement, which the parties sign, includes a completed Section 13(b) (Arbitration), the first line of which was revised to read as follows: "Each party shall, and Agency shall cause each Contractor to, submit any dispute, controversy, or claim arising out of or relating to this Agreement or any breach or termination of this Agreement, including but not limited to services provided under this Agreement, and any alleged violation of any federal, state, or local statute, regulation, common law, or public policy, whether sounding in contract, tort, or statute, to binding arbitration." Also assume that the Agency requires each Contractor to sign a mandatory arbitration agreement, which clearly states that any claims brought against the Agency or any client business to which the Contractor is assigned, may not be brought in court and instead must be arbitrated. One of the Contractors (individual workers) assigned to work for the Company sues the Company and the Agency in court because the Contractor alleges he was sexually harassed by a Company manager. Both the Company and Agency argue that the court may not hear this case because the Contractor is required to arbitrate the claim. Are the Company and Agency correct? Would a court refuse the hear the case and require the Contractor to arbitrate this sexual harassment claim? Assume the parties do agree to mandatory arbitration. The final draft of the Agreement, which the parties sign, includes a completed Section 13(b) (Arbitration), the first line of which was revised to read as follows: "Each party shall, and Agency shall cause each Contractor to, submit any dispute, controversy, or claim arising out of or relating to this Agreement or any breach or termination of this Agreement, including but not limited to services provided under this Agreement, and any alleged violation of any federal, state, or local statute, regulation, common law, or public policy, whether sounding in contract, tort, or statute, to binding arbitration." Also assume that the Agency requires each Contractor to sign a mandatory arbitration agreement, which clearly states that any claims brought against the Agency or any client business to which the Contractor is assigned, may not be brought in court and instead must be arbitrated. One of the Contractors (individual workers) assigned to work for the Company sues the Company and the Agency in court because the Contractor alleges he was sexually harassed by a Company manager. Both the Company and Agency argue that the court may not hear this case because the Contractor is required to arbitrate the claim. Are the Company and Agency correct? Would a court refuse the hear the case and require the Contractor to arbitrate this sexual harassment claim?

Answer rating: 100% (QA)

The Company and Agency are likely correct in arguing that the ... View the full answer