Question: McGraw and Duffy have a contract that includes a binding arbitration clause. The clause provides for arbitration of any dispute arising out of the contract.

McGraw and Duffy have a contract that includes a binding arbitration clause. The clause provides for arbitration of any dispute arising out of the contract. The clause also provides that the arbitrator is authorized to award damages of up to $100,000 in any dispute arising out of the contract. McGraw allegedly breaches the contract. Duffy seeks arbitration, and the arbitrator, given the willfulness of the breach and the magnitude of its consequences, awards Duffy $150,000 in damages. Would a court uphold the award? Why or why not?

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