Seaside Hotels,Inc

question 4

Multiple Choice

Seaside Hotels,Inc. ,adopts an alternative dispute resolution (ADR) program.Tess,a current employee,signs an agreement under which arbitration is subject to "Seaside's rules,with the employee to bear all costs of the proceeding." When a dispute arises,Tess refuses to arbitrate.Seaside files a suit to compel arbitration.The court will most likely

• A)order arbitration according to Seaside's rules.
• B)order arbitration but suspend Seaside's rules.
• C)refuse to order arbitration if Seaside refuses to split the costs.
• D)refuse to order arbitration if Tess lacks the ability to pay.

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Definitions:

Operating Leverage

Operating Leverage is a measure of how a company's operating income changes with sales volume, indicating the proportion of fixed costs in total costs.

Variable Expenses

Expenses that vary directly with the amount of output or activity level.

Fixed Expenses

Costs that do not change in total with changes in the volume of activity, such as rent, salaries, and insurance premiums.

Variable Expenses

Costs that change in proportion to the level of business activity or production volume.