Mandatory Arbitration

Mandatory Arbitration

Project description
1. Now that you’ve read about mandatory arbitration, do you think all businesses should incorporate such clauses in their contracts? Pretend you just opened your own

car detail business and have only been operating for 3 months. Should you create a contract with mandatory arbitration? Why or why not?

2. You’re a smart business person and have been buying used equipment to keep your expenses low as you’ve started your car detailing business. You were ecstatic when

you found a specialized upholstry/carpet cleaning machine for vehicles on craigslist. You drove 3 hours to an area outside Kansas City, Kansas to pick up the machine

and pay for it ($2,000). The seller, Sam Sneeky, advertised that the machine had only been used 2x and was in perfect working condition.

Upon returning to your shop, anxious to try the machine, you were sadly disappointed to find that the machine wouldn’t even turn on. You immediately called Sam, but he

did not answer. For the next week, he did not return any of your message or calls. You’re now so angry that you want to sue Sam to return the machine and get your

$2,000 back.

Discuss which state and/or federal court has jurisdiction and why. Make sure you discuss how you arrived at your conclusion applying the legal concepts and case law

from this week’s textbook readings.

3. You’ve decided that a great way to increase your car detail business is to negotiate a contract with the car rental companies. You can provide a detail cleaning

when the car rental company is ready to sell the vehicle. So, you approach We Rent Cars with your brilliant business plan. They like the idea and tell you that

whenever they hire any company or individual to do work for them, they require that a detailed contract be completed outlining all of the terms AND need you to fill

out a detailed information sheet about your company/service. Thrilled, you take the paperwork home to fill out and see that the “information form” is much like a job

application. There are blanks for you to fill in your login id and passwords for all social media sites like Twitter and Facebook. Under these lines, the form explains

that it is We Rent Cars policy to perform background checks on all individuals and companies. The form also indicates that if We Rent Cars executes a contract with

you, that you will be required to sign an agreement that prohibits you and/or your company from posting any negative or derogatory statements on any social media site.

Discuss what legal issues are presented here and whether you do or don’t have a legal basis to refuse to comply with We Rent Cars requests. Minimum 2 paragraphs and

incorporate 2 different terms/phrases from this week’s constitutional reading (in all CAPS).

When it talks about case law from the book please refer to the book by either looking it up under

Business Law and the Legal Environment, Sixth Edition, by Beatty and Samuelson; West Publishing Co 2010. ISBN: 978-1-111-53060-0 (hardback).

or using this pdf

http://www.saylor.org/site/textbooks/Business%20Law%20and%20the%20Legal%20Environment.pdf

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