Question 5

Pip owns Great Expectations, a restaurant in West Hollywood. Pip enters a contract with Estella, a meat supplier. Estella gives Pip

a form supply contract to sign which contains an arbitration clause. The clause states that "Miss Havisham will serve as an

arbitrator for any dispute arising from this contract. Pip does not know that Miss Havisham is Estellas aunt. Estella delivered a

shipment of meat that Pip believed was defective. Estella contended that the shipment fulfilled her obligation under their contract.

In accord with the contract arbitration provision, the dispute between Pip and Estella was submitted to Miss Havisham. After Miss

Havisham filed her decision in favor of Estella, Pip discovered her relationship to Estella. Which of the following statements is

most accurate?

a. Since Pip agreed to have Miss Havisham as the arbitrator, her award is binding. span>

b. Pip may be able to have the arbitration award overturned because of Miss Havisham's

undisclosed partiality to Estella.

c. Estella is allowed to choose a trusted family member to mediate any dispute she is involved in.

d. Only courts may order arbitration, so Pip is free to sue Estella in civil court.

Incorrect. Please review Top Ten Concept # 3