BA 270 (2)

BA 270 : The Legal Environment of Business

CH3 HOMEWORK:Alternative Dispute Resolution

Below is a scenario for you to analyze with your group. Draft a concise response (not to exceed 2 paragraphs) which incorporates the chapter discussion on awards including all Federal and State legislature. Explain how the material applies to this scenario.

Two brothers, both of whom are certified public accountants (CPAs), form a professional association to provide tax-accounting services to the public. They also agree, in writing, that any disputes that arise between them over matters concerning the association will be submitted to an independent arbitrator, whom they designated to be their father, who is also a CPA. A dispute arises, and the matter is submitted to the father for arbitration. During the course of arbitration, which occurs over several weeks, the father asks the older brother, who is visiting one evening, to explain a certain entry in the brothers’ association accounts. The younger brother learns of the discussion at the next meeting for arbitration. He says nothing about it, however. The arbitration is concluded in favor of the older brother, who seeks a court order compelling the younger brother to comply with the award. The younger brother seeks to set aside the award, claiming that the arbitration process was tainted by bias because “Dad always liked my older brother best.” The younger brother also seeks to have the award set aside on the basis of improper conduct in that matters subject to arbitration were discussed between the father and older brother without the younger brother’s being present. Should a court confirm the award or set it aside? Why or why not?


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