SBD Kitchens and a Client, Jefferson, Got into a Dispute

question 126

Multiple Choice

SBD Kitchens and a client, Jefferson, got into a dispute about work done for the Jeffersons, who sued. The contract contained an arbitration clause, so the court ordered the parties to go to arbitration. The arbitrator found that SBD breached its contract. He also found that the Jeffersons defamed SBD by spreading negative information about the company. The Jeffersons were ordered to pay damages of almost $200,000. They appealed to the court of appeals. It held that:​

• A) ​the award was affirmed.
• B) ​the award for breach of contract was affirmed but not the judgment for defamation, as it was not related to the contract. The arbitrator exceeded his authority.
• C) ​the award was overturned as a "obvious error in law" concerning defamation.
• D) ​the decision was valid but the amount awarded was excessive, so must be reduced.
• E) ​none of the other choices are correct.

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Definitions:

Technical Skills

The specific abilities and knowledge necessary to perform specialized tasks in various fields or professions.

Emotional Stability

Emotional Stability is a personality trait that denotes how consistently an individual can maintain a calm and composed state, especially under stress or in challenging situations.

Creativity

The ability to produce original and unusual ideas, or to make something new or imaginative.

Openness to Experience

A personality trait that signifies how much a person is open to new experiences, novelty, and variety in life.