Facts: In 1995 Adams, was engage as a sales counselor, signed an occupation practical application with Circuit City. A provision in their application essential all employment disputes to be settled by arbitration. In 1997, Adams cross-filed an employment unlikeness lawsuit against the company in body politic court. Circuit City then filed suit in federal official District Court, seeking to enjoin the state-court action and to compel arbitration of Adams claims infra the FAA. The District Court move intoed the requested order. The court think that Adams was obligated by the arbitration agreement. In reversing, the Court of Appeals engraft that the arbitration agreement between Adams and Circuit City was contained in a contract of employment, and thus not subject to the FAA under section 1 of the Act.
Issue: The issue is whether an employees statutory rights can be subject to mandatory arbitration.
Rule: sectionalisation 1 of the Federal Arbitration Act
Analysis: below Section 1 of the Federal Arbitration Act contracts of employment of seamen, railroad employees, or any other class of workers pursue in foreign or interstate commerce are excluded from the Acts coverage. However since he did not qualify for the exemption, the provision he had agreed to initially when he applied that he would enter arbitration for any disputes will be upheld. Even for discrimination or statutory claims he gave up his right to file a suit in the court system.
Conclusion: The U.S. irresponsible Court stated that the employees claims based on statutes may be subject to mandatory arbitration.If you want to get a skilful essay, order it on our website: Ordercustompaper.com
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