[Jade Shoes] Coleman Owns a Sporting Goods Store and Has

question 77

Multiple Choice

[Jade Shoes] 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.
-If Coleman had signed a submission agreement, but subsequently decides to file a lawsuit against Jade, would Coleman still be required to arbitrate?

• A) No, because a party has a right to file a lawsuit.
• B) Yes, because there are more advantages to arbitration.
• C) No, because the distribution contract between Coleman and Jade did not include a binding arbitration agreement.
• D) Yes, because he entered into a submission agreement.
• E) No, because a submission agreement is not a binding arbitration agreement.

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Definitions:

S & L Debacle

Refers to the financial crisis involving Savings and Loan associations in the United States during the 1980s, leading to significant regulatory changes and economic impacts.

Transaction Motive

The need to hold money for the purpose of conducting everyday transactions.

Precautionary Cash

Funds held by individuals or firms to deal with unexpected events or emergencies, providing a buffer against financial issues.

Credit Availability

The ease with which individuals or companies can obtain loans or other forms of credit from financial institutions.