Question

Coleman owns a sporting goods store and has purchased top-quality, brand-name athletic shoes from Jade's Shoe Distribution for many years, but they have no written contract in place. Last month, Coleman learned that the latest shipment from Jade's are not authentic brand-name shoes, but instead a knock-off brand that costs a fraction of the price Coleman pays. Coleman cannot sell these shoes because his customers would know the difference, and Coleman demanded Jade refund him. Jade sent Coleman a written request for arbitration within thirty days. In response, Coleman called Jade, threatening to file a lawsuit against Jade and exposing her company as a fraud. Jade laughs, saying Coleman is required to arbitrate their dispute within thirty days. Is Jade correct that they are required to arbitrate their dispute?

Answer 1

No, arbitration is voluntary and Coleman never signed an agreement to arbitrate their dispute

Step-by-step explanation:

Arbitration is an alternative form of dispute resolution that occurs outside of a court. An arbitrator is chosen to hear both parties and decide on a settlement.

This settlement is binding on all parties.

Coleman has been purchasing top-quality, brand-name athletic shoes from Jade's Shoe Distribution for many years, but they have no written contract in place.

So when Coleman asks for a refund, he is not obligated to undergo an arbitration because he did not sign any agreement to do so.