THE ECONOMIC DIMENSION Which party benefited from the court’s ruling? Why?

THE LEGAL ENVIRONMENT DIMENSION Laurel Creek argued that even if there was no actual agency relationship, an implied agency relationship existed. Is this argument valid? Why or why not?

Gilbert Bishop was admitted to Laurel Creek Health Care Center suffering from various physical ailments. During an examination, Bishop told Laurel Creek staff that he could not use his hands well enough to write or hold a pencil, but he was otherwise found to be mentally competent. Bishop’s sister, Rachel Combs, testified that when she arrived at the facility, she offered to sign the admissions forms, but Laurel Creek employees told her that it was their policy to have the patient’s spouse sign the admissions papers if the patient was unable to do so. Combs also testified that Bishop asked her to get his wife, Anna, so that she could sign his admissions papers. Combs then brought Anna to the hospital, and Anna signed the admissions paperwork, which contained a provision for mandatory arbitration. Subsequently, Bishop went into cardiopulmonary arrest and died. Following his death, Bishop’s family brought an action in a Kentucky state court against Laurel Creek for negligence. Laurel Creek asked the trial court to order the parties to proceed to arbitration in accordance with the mandatory arbitration provision contained in the admissions paperwork signed by Anna. The trial court denied the request on the ground that Anna was not Bishop’s agent and had no legal authority to make decisions for him. Laurel Creek appealed.