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

question 63

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 overturned as there was evidence the arbitrator was "grossly biased."
• 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:

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Land Claim

A formal assertion by a group or individual to have legal rights over a specific area of land, often based on historical occupancy or use.

Mythological Creature

A mythical being or legendary animal often featured in folklore or cultural stories, known for its unique powers or characteristics.