Arbitration Clauses Require Agreement on Two Counts

question 24

Multiple Choice

Arbitration clauses require agreement on two counts. Which of the following is one of those accounts?

• A) The complainants agree on who is right and who is wrong.
• B) The complainants agree on litigation issues.
• C) The complainants agree to abide by the awards resulting from the arbitration.
• D) The complainants agree to not hire legal counsel.
• E) The complainants agree to hear the case before the World Court if the arbitration fails.

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Definitions:

Limited Liability

A form of legal protection for shareholders and owners that limits their losses to the amount of investment in the company, protecting personal assets from company debts and liabilities.

Double Taxation

Double Taxation is a tax principle referring to income taxes being paid twice on the same source of earned income. It can occur when income is taxed at both the corporate level and personal level, or in two different countries.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders; it has rights and liabilities independent of those owners and can enter into contracts, sue, and be sued.

Sole Proprietorships

A business structure where a single individual owns and operates the business, bearing full responsibility for its debts and obligations.