E.Z. was a resident of the Fredericksburg Care Company, L.P., a nursing home. E.Z. died, and her

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E.Z. was a resident of the Fredericksburg Care Company, L.P., a nursing home. E.Z. died, and her beneficiaries sued the nursing home for negligent care and wrongful death. The nursing home moved to compel arbitration based on an arbitration clause contained in the agreement that E.Z. signed before her admission to the nursing home. It was undisputed that this agreement signed by E.Z. did not comply with the requirement that an agreement to arbitrate a health care liability claim "must contain a written notice in bold-type, ten-point font that conspicuously warns the patient of several important rights." However, the nursing home still motioned to compel arbitration, asserting that federal law should determine the enforceability for the agreement because "the underlying patient-provider transaction involved interstate commerce, which made the FAA applicable to the pre-admission nursing home agreement." The nursing home therefore argued that the FAA prevented the arbitration agreement from being invalid. The trial court denied the defendant's motion to compel, and the defendant nursing home appealed. How do you think the court of appeals ruled? Why? Fredericksburg Care Co., L.P. v. Perez (2015 Tex. LEXIS 221).
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The Legal Environment of Business A Critical Thinking Approach

ISBN: 978-0134074030

8th edition

Authors: Nancy K. Kubasek, Bartley A. Brennan, M. Neil Browne

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