Question

Week 7 case study – p.286. Mary was employed by a small cellular phone provider as a sales representative. When she was hired she signed an employment agreement specifying that she would submit any dispute arising out of her employment with the company to arbitration. She developed several commercial accounts resulting in the sale of multiple cell phones and service contracts. Once developed, Mary earned an adequate income servicing these accounts and renewing them. However, her employer became concerned that Mary was not aggressively soliciting new business and so reassigned some of Mary’s large accounts to another sales representative.

Mary objected to the loss of her largest accounts but was unable to persuade the company to reverse the work assignment. Consequently, she was forced to seek new business but was only minimally successful in doing so. When her revenues (and accordingly her income) dropped, she was counseled about her job performance and warned that she could be

terminated if her numbers didn’t improve. Uncomfortable with the requirement to arbitrate, Mary proposed to the company that they attempt to mediate their differences and the company agreed.

The mediation was successful. Mary was permitted to resign, the negative comments about her job performance were expunged, she waived her right to arbitrate the dispute, and received a monetary settlement from the company. However, after receiving the settlement Mary began to have second thoughts. She became convinced that the mediator had failed to fully inform her of her rights and had obtained and inadequate monetary settlement. She felt that the mediator could have obtained a better settlement for her.

Q1. What remedies might Mary have against the mediator?

Q2. What exposure does the company have to a lawsuit?

Answer 1

Q1. Mary has several remedies against the mediator that mediator might hide some information that are beneficial for her, mediator may not properly inform her about her rights and may charge huge amount for the settlement of the disputes. She may believe that arbiter may acquire better settlement for her she may show signs of improvement bargain if middle person works with no inclination.

Q2. Company provide exposure to have a lawsuit is to provide compensation for the loss that Mary face during her job interval also provide salary for some period of time to cover the loss that she faces due to unemployed and also get the monetary amount for the negative comment and mental trauma that she face in the company.

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