Ahmed and Jerry Enter into a Business Agreement to Assemble

question 79

Multiple Choice

Ahmed and Jerry enter into a business agreement to assemble and sell prepackaged salads.In their written agreement,both agree that they will be required to settle all disputes through arbitration.Which of the following statements is true of this situation?

• A) This case is an example of a mandatory arbitration clause.
• B) This case is an example of a voluntary arbitration clause.
• C) This case is an example of a caucus arbitration agreement.
• D) This case is an example of a court-annexed arbitration clause.
• E) This case is an example of a postdispute arbitration agreement.

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Definitions:

Delegator

A person or entity that assigns tasks or duties to another party (the delegatee) while maintaining ultimate responsibility.

Obligation

A duty or commitment requiring an individual or entity to act in a certain way, often legally binding.

Duress

A situation where a person is compelled to perform an act or enter into a contract under threat of violence, harm, or undue pressure.

Doctrine

A system of principles or tenets adopted and propagated by a religious organization, political entity, or similar body.