Reference no: EM131674990

Question: When Holloman applied for a job at Circuit City, she signed a dispute resolution agreement (DRA) that stated: "This agreement requires you and Circuit City to arbitrate certain legal disputes related to your application for employment or employment with Circuit City." The job application then added, "Circuit City will consider your application only if this agreement is signed." Finally, the DRA stated, "I understand that my employment, compensation and terms and conditions of employment can be altered or terminated, with or without cause, and with or without notice, at any time, at the option of either Circuit City or myself." Holloman was hired, but she later quit and sued Circuit City, claiming she had been discriminated against and constructively discharged. Holloman argued that the arbitration agreement was illusory and not supported by consideration because of Circuit City's unilateral ability to terminate or modify the agreement. How should the court rule? Explain your reasoning.