Organizational Crisis Management Part One 1. The legal issue in Ingle v Circuit City Stores was whether a company can compel arbitration on its employees. The answer, as the Court of Appeals saw it, was that the Federal Arbitration Act (FAA) leaves arbitration enforcement to state law. In the case of California, the state in which Ingle v Circuit City Stores was heard, there was ample precedent (e.g. in Armendariz) that an arbitration agreement need not be valid if deemed oppressive. Circuit City’s arbitration agreement was both binding and non-negotiable, leading the Court of Appeals to find the original arbitration agreement non-enforceable. Thus, it was legal for Ingle to file a lawsuit against Circuit City rather than be forced into...The end:
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