Question

Miller signed an employment contract containing an arbitration clause stating that "any dispute" arising during employment must be resolved by binding arbitration. Two years later, after she was injured on the job and took leave to recover, she was fired. She filed a complaint for disability discrimination with the Equal Employment Opportunity Commission, which gave her a "right to sue" letter. She then filed suit in federal court against her employer for disability discrimination. The court:

Answer 1

Answer:

C) dismissed the suit because of the arbitration agreement.

Explanation:

The whole purpose of an arbitration agreement is to avoid lawsuits. In this case, both Miller and her employer signed the agreement voluntarily, so the agreement is valid.

The arbitration agreement is a method for resolving disputes outside regular court, where both sides agree to present their arguments to an arbitrator that will decide who is right. The arbitrators resolutions (arbitration award) is legally binding and it can be enforced by a court.