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[Sexual Harassment ADR] Naomi Works at a Fast-Food Restaurant Which

Question 12

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[Sexual harassment ADR] Naomi works at a fast-food restaurant which is owned by an international company located in Mexico. Naomi is very angry with her supervisor, who has been making inappropriate sexual comments to her and other employees. Naomi decides to sue and retains a lawyer, Dominic. Dominic talks with the owners of the restaurant and is informed that Naomi signed an agreement to mediate and also to arbitrate any claims. Naomi informed Dominic about other employees who entered into such agreements and later complained of harassment. Dominic promises her that under federal law, he is legally entitled to get copies of all documents used during any other mediations and arbitrations and that he is also entitled to get detailed information regarding what was said and agreed upon by them. Dominic also tells Naomi that, while he is not going to bring it up now, if they so choose, Dominic and Naomi can avoid the arbitration agreement because under a new federal law, such agreements cannot be enforced if one of the companies involved is internationally based. He also tells Naomi in response to her question about the possibility of mediation in her case to forget it, because mediation is pretty much the same thing as arbitration. Dominic tells Naomi that an option is to arbitrate and, if the outcome is bad at arbitration, file a court action in federal court. Dominic says that the federal court judge would not consider an arbitrator's decision in making a determination.
-Was Dominic correct when he told Naomi that if she lost at the arbitration level, a federal judge would consider the case anew without consideration of the arbitration agreement?


A) Yes, because an action in court is considered completely separate from an arbitration proceeding.
B) Yes, but only if Naomi filed an "Intent to Seek Further Relief" form with the arbitrator.
C) No, because the arbitration agreement would completely bar Naomi's ability to file a court action.
D) No, because in a later court action, a federal judge in district court would only reverse an arbitrator's decision for certain reasons such as that the arbitrator displayed bias or corruption.
E) Dominic is correct only because an international company is involved.

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