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

question 3

Multiple Choice

[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.
-Is Dominic correct that a federal law provides that arbitration agreements involving international businesses are unenforceable?

• A) He is partially correct. The law only applies to any country not a party to the North American Free Trade Agreement.
• B) He is partially correct. The law only applies to any country that has signed the North American Free Trade Agreement.
• C) He is partially correct. The law only applies to European countries.
• D) He is incorrect.
• E) He is correct.

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Definitions:

Global Investing

Global investing refers to the practice of investing in international markets to diversify investment portfolios and exploit opportunities in foreign economies.

Accounting Standards

Accounting Standards are authoritative standards for financial reporting and are the main source of generally accepted accounting principles (GAAP).

Consistency

The accounting principle that requires companies to apply the same accounting methods and procedures from period to period unless a change is clearly justified.

Accounting Methods

The rules and procedures that companies follow in reporting their financial information, encompassing revenue recognition, expense reporting, and inventory management.