This Homework will test your ability to understand and apply concepts discussed in the book and the lectures. You will not need to conduct any extra research for the answers. Read the fact summaries and answer the seven questions below. Please explain your answers thoroughly. Each answer should be 2-7 sentences (roughly), typed, single-spaced, 12-point font, 1margins Worth up to 25 points. Upload your answers to Canvas either in a Word document, a PDF, or a google doc.

SCENARIO 1: Carrie Rose owns a small cheese shop, The Mouse Trap, in Olympia Washington. She often contracts with a large cheese importer, World Cheese Corp. (WCC), located in Wisconsin to supply her with French, Italian, and British cheese. One evening, Carrie receives a large order of cheese from WCC, which she needs to fulfill customer orders for the winter holidays. Carrie places the cheese in her temperature-controlled storage unit so she can unpack it the next day. As she unpacks the cheese the next morning, she notes a significant amount of inedible mold on the product. She immediately calls WCC, but due to the holiday rush, WCC cannot replace the order nor will it accept a return of the moldy cheese for credit. In fact, WCC blames Carries storage conditions for the mold. Carrie calls other suppliers and finds comparable cheese to fulfill her orders, but at a much a higher price than what she paid to WCC. Later, Carrie decides to sue WCC for breach of contract. Carrie believes she has lost at least $45,000 in profits and other related costs due to the breach. Use this scenario for questions 1-3:

The Mouse Trap is incorporated in Washington state, while WCC is incorporated in Wisconsin and maintains its corporate headquarters in Milwaukee, WI. In which state should Carrie file her lawsuit? Should she file in federal court or state court? Explain why the court you chose is the best court for Carrie. (3pts) Unfortunately, after Carrie files her lawsuit, she learns that the contract she signed with WCC contains a clause that requires any dispute between the parties to be arbitrated in Wisconsin with the American Arbitration Association under Commercial Arbitration Rules. Carrie never noticed this provision, nor was it brought to her attention. WCC simply presented her with the written contract and she signed it. What is an arbitration clause? What does the presence of the arbitration clause mean for Carrie's lawsuit? (3pts) If Carrie pursues arbitration, what are the advantages and disadvantages of that process for her versus litigation? Name at least 3 advantages and 3 disadvantages. (5 pts)