Question

12.

A wonderful, smart student named “SHINY STAR” enrolled in an online college, called “SUBPERB 4-YEAR TURN YOUR LIFE INTO A MILLION DOLLARS UNIVERSITY.”

When Shiny Star was meeting with his advisor, the advisor told Shiny Star that the college was one of the cheapest colleges around.

However, 2 years into his degree, Shiny Star compared prices and realized that other colleges around were much, much cheaper than “SUBPERB 4-YEAR TURN YOUR LIFE INTO A MILLION DOLLARS UNIVERSITY.”

Shiny Star was upset. He sued the school in District Court, claiming the school had violated competition laws and false advertising laws.

In defense, the University argued that its’ enrollment agreement clearly contained a requirement that all disputes be arbitrated. Shiny Star signed this agreement when he paid and enrolled in classes. The University presented the signed agreement to arbitrate and the District Court dismissed Shiny Star’s case.

This is an example of a contract that agrees to the place or the manner in which the lawsuit will be handled.

What is the legal term for such an agreement to handle the case through arbitration, for example?

Answer 1

Answer

In the eyes of law, the agreement having dispute to arbitration generally have a specific status in the eyes of law.we can understand it by example , Suppose the dispute on this contract and plead by the common defence that the contract is void then thus the claims (any) which is based upon it will fails.But if the shiny star can successfully claim again that the agreement is void and null then the every clause which is in the contract like the arbitration will be void .Courts in most countries have accpeted that The contract could be delivered as Void by the court if the Contract have arbitration clause then apprpriate forum should determine if the contract is void or not by The Arbitration Tribunal .

Like in this case , the contract is highly in favor of Million dollar university and the shiny star is made to sign a coontract in duress Therefore the case or dispute can be referred to Arbitration Tribunal and it can be persuaded by the court that under duress signing a arbitration contract is Void .

Have a good day !