Samantha Signed an Employment Contract with True Diva Cosmetics (TDC)to

question 45

Multiple Choice

Samantha signed an employment contract with True Diva Cosmetics (TDC) to work as a sales clerk.The agreement included a mandatory arbitration clause in case of any employment disputes.After Samantha was denied a promotion,she filed a charge of discrimination with the Equal Employment Opportunity Commission (EEOC) .The manager of TDC told Samantha that her employment contract requires her to seek redress through arbitration,not the EEOC.Which of the following holds true in this scenario?

• A) Samantha will have to withdraw her discrimination claim filed with the EEOC because she signed a contract agreeing to arbitration.
• B) The EEOC can pursue Samantha's case because it was not a party to the employment agreement.
• C) The EEOC can represent Samantha in the arbitration of her case because it is the official government agency for resolving complaints of discrimination.
• D) Samantha will be violating Title VII of the Civil Rights Act of 1964 if she pursues her case with the EEOC.

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Definitions:

Salary

A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee.

Tax-Deferred Account

A savings account or investment option where taxes on the principal and/or earnings are delayed until the investor withdraws the funds.

Taxable Account

An investment account in which the earnings are subject to income tax.

Compounded Quarterly

The process of adding interest to the principal sum of a loan or deposit, calculated every three months.