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Anette sued her employer, Investigations Inc., for sexual harassment, employment discrimination, and wrongful termination in violation of public policy. Prior to litigation, and while she
Anette sued her employer, Investigations Inc., for sexual harassment, employment discrimination, and wrongful termination in violation of public policy. Prior to litigation, and while she was still employed with Investigations, Anette signed an employment contract with the following provision: "I understand and agree that if my employment is terminated or my employment status is otherwise changed or if any other dispute arises concerning my employment and The Company and I cannot resolve such dispute through informal internal efforts, I will submit any such dispute exclusively to binding arbitration before a retired judge." After Anette filed suit, Investigations filed a motion to compel arbitration. However, Anette asserted that any agreement to arbitrate was unconscionable because it lacked mutuality of obligation. Is Anette correct? a. No. Although this is an adhesion contract, there is a mutual obligation to arbitrate disputes arising out of her employment. b. Yes. The procedural unconscionability alone in mandating arbitration is sufficient to nullify the contract. c. Yes. There is both procedural and substantive unconscionability in requiring arbitration for disputes arising out of her employment. d. No. While the arbitration clause amounts to substantive unconscionability, the lack of procedural unconscionability protects the arbitration clause
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