Beth Enters into a Contract for the Services of Cable

question 6

Multiple Choice

Beth enters into a contract for the services of Cable Connection Inc. The corporation provides the contract, which contains an arbitration clause. This clause requires that any dispute must be submitted to arbitration rather than being pursued through litigation. With respect to contracts with such clauses, federal courts have ruled all of the following except​

• A) ​arbitration is encouraged under the Federal Arbitration Act.
• B) ​arbitration can provide a meaningful way to seek redress for harm.
• C) ​state law preempts federal law with respect to arbitration clauses.
• D) ​federal law preempts state courts' interpretations of arbitration clauses.

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Definitions:

Misrepresentation

False or misleading statements that induce someone to enter into a contract, potentially rendering the contract voidable.

Liable

Refers to being legally responsible for something, typically requiring compensation or remedy for damages caused.

Misrepresentation

A false statement of fact made by one party to another, which has the effect of inducing that party into the contract.

Ratification

The adoption of a contract or act of another by a party who was not originally bound by the contract or act.