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:

Moderately Heritable

A term indicating that a trait or characteristic is influenced by genetic factors to a moderate extent, alongside environmental factors.

Biological Drive

An innate impulse in living organisms that directs behavior towards basic survival and reproductive needs.

Hunger

The physical sensation of needing or wanting food.

Naturally

Occurring in nature; not made or caused by humans.