Question
Personnel Company, an Iowa corporation, entered a contract with Patterson to help her find employment in the tax law field.The contract provided that the employer
Personnel Company, an Iowa corporation, entered a contract with Patterson to help her find employment in the tax law field.The contract provided that the employer would pay the placement fee, unless Patterson voluntarily quit within 9 days, in which case she would be responsible for the fee, which was 20 percent of one year's salary.The contract also required non-binding arbitration in case a dispute arises concerning the contract. The contract also required that Patterson (1) arbitrate the claim in Des Moines, Iowa some 1,200 miles away from her location in Hartford, CT and pay all costs of the arbitration.Patterson was placed in a job with an annual salary of $80,000 but she quit after one month.Patterson refused to pay the fee, and Personnel Company sued her for breach of contract.The contract between the parties contained an interpretation clause. On the other hand, the contract did not have a severability clause. At the hearing, the arbitrator found that Patterson breached the contract, and even though at the time of the contract, Personnel Company's state-required license to operate had been allowed to lapse, the contract was still enforceable by Personnel Company.The arbitrator, therefore, ruled for Personnel Company. Patterson appeals the nonbinding arbitration decision. Discuss how the appeals court will rule on the arbitrator's decision.
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