The arbitration agreement
Course:- Operation Management
Reference No.:- EM131143812

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When Bill Compton started working for Merlotte Enterprises, he received a copy of Merlotte's Employee Handbook. As part of his acceptance of employment at Merlotte's, Bill signed a form stating that he received the handbook and understood its terms and agreed to abide by the terms. During Bill's third year of employment, Merlotte revised the handbook. One of the revisions was the addition of an arbitration clause that stated that all disputes arising out of employment with Merlotte would be settled by binding arbitration. Merlotte advised its employees of the specific changes to the handbook terms and required all employees to sign waivers stating that they read, understood, and accepted the revised terms. Bill signed this form and continued working at Merlotte's until his employment was terminated. Bill sued Merlotte alleging various claims of unfair dismissal.

Should the Court hear Bill's claim or is he bound by the arbitration agreement? Discuss the pros and cons.

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