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Write a 3-5 page papner describing the application of interest arbitration with regard to public sector employment. Within the assignment describe a recent high profile bargaining process between a union and a public sector employment organization (hospital, police, air traffic controllers, and teachers) in which issues were not resolved and the unresolved issues were sent to an impartial arbitrator for a final decision. Do you agree with the final ruling? Please support your stance with academic research.
Please support your assignment with research and submit in APA format. Additionally, please submit your assignment in a paper format with a list of references (using APA standards) at the end of the assignment.

Application of Interest Arbitration with Regard to Public Sector Organization
Schuyler McKenzie

One of the most popular method of solving disputes is through arbitration. American Arbitration Association (AAA) is the most popular arbitration in the world, as it has over 800 employees in 35 offices worldwide and represents over 8,000 arbitrators and mediators worldwide. Arbitration is actually an extremely old form of settling disputes between people, businesses, as well as between nations. The process itself is a private method of adjudication, which uses at least one arbitrator to resolve the dispute. Several companies have resulted to using arbitrational clauses within their contracts, as they have become more plentiful through applications and online websites. Arbitration is a process resolving disputes by a neutral third party (the arbitrator) providing a decision after a scheduled hearing. It is important to note, there are several forms of arbitrations however this paper will address the application of interest arbitration with the regard to public sector employment. The specific example focused will pertain to the recent Paypal Corporation case. Last year American arbitration Association (AAA) arbitration administered at least 230, 255 cases and it has administered over 2 million cases in the past seventy-five years. In my opinion, there are several reasons why most people prefer arbitration over the likes of allowing a court to rule on their case. First of all, the arbitrator will be chosen by the parties themselves and will be a known expert in that field. In fact, it is highly common that an arbitration institution provides companies with a list of professionals that are recommended to be appointed as an arbitrator. These experts vary in different fields of study. Secondly, the procedure of arbitration is confidential and this privacy proves to very helpful in protecting the parties they are representing. Obviously, it would be unfortunate for a company to have all their disputes disclosed to the public, especially their consumers or ones interested in becoming a consumer or buyer. Lastly, the arbitration process is a fairly quick, especially compared to a court system. The arbitration cost is more affordable than actually going to court, as well. The fact that a lot of procedures courts are required to perform are not required in arbitration, the process takes less time. Although, arbitrations differ from court cases in several ways, they also share some important similarities. Like court rulings, an arbitral award is binding, final and can be effortlessly enforced

Since the use of arbitration as a method of resolving disputes has grown with the growth of International Trade, several international institution has been established. For example, United Nations Commission on International Trade Law (UNCITRAL), International Chamber of Commerce (ICC), and International Center for the Settlement of Investment Disputes (ICSID) are the international institutions of arbitration that can be used. On the other hand, there is also a national institution of arbitration that has been established by the Government of Indonesia. For instance, in 1977 the Government of Indonesia has established the National Arbitration Body of Indonesia.

In addition, the above institutional bodies have established some arbitration conventions, such as, UNCITRAL Arbitration Rules, UNCITRAL Model Law, ICC Rules of Arbitration and ICSID Convention. Indonesia signed the ICSID Convention on 16 February 1968 Concerning the Ratification of Convention on the Settlement of Investment Disputes between States and Nationals of Other States. However, the Indonesian Arbitration Law did not take the UNCITRAL Model Law into account, therefore Indonesia can not be qualified as a Model Law Country.

In summary, arbitration is a dispute resolution method that is better than the court. People should put arbitration clause in their agreement or contract as a way to settle a dispute. However, states should also support their citizen in using the arbitration as an alternative dispute resolution by ratifying international conventions. [pic]

In the recent Paypal Corporation case, the arbitration clause was not enforced due to miniscule details such as clicking a mouse. The overruling of these clauses is becoming the norm as people are beginning to realize what they have gotten themselves into.

The same type of arbitrational clause dispute as the Paypal Corporation occurred in the case of BellSouth Mobility LLC v. Christopher. BellSouth institutionalized an arbitrational clause in its service agreement that states that “instead of suing in court, company and customer agree to arbitrate any and all dispute”. In the event that the disagreement goes through arbitration, the arbitrator can not give punitive damages to the plaintiff as well as only receive a limited amount of recovery money. When Christopher brought the case before an appellate court, the court sided in his favor claiming that the contract was “substantively unconscionable” due to the fact that BellSouth still had the right to bring Christopher to court over different legal matters, giving them an “unfair advantage.” The case continued to go to trial court to see if the contract was “procedurally unconscionable” because of the small print of the arbitrational clause. Because Christopher was not fully forewarned about the arbitrational clause, and the fact that BellSouth took advantage of a client, BellSouth was found guilty (Hackbarth).

A similar situation occurs in the case of Toppings v. Meritech Mortgage Services (MMS). An elderly couple, Margaret and Roger Toppings received a loan from Meritech Mortgage Services for thirty-seven thousand dollars with a monthly payment plan which would last for fifteen years, along with thirty-six thousand dollars in interest. Before signing the loan, the couple asked for the document to be explained. At the time, the MMS lawyer was not coherent with the document but told the couple to read it at home after signing the document. Upon reading the contract, the Toppings came across the amount to be repaid in interest and tried to bring MSS to court for trying to take advantage of the elderly. National Arbitration Forum (NAF) was selected by MSS as the arbitration consultants. A precedent case was brought up in court in which it was deemed “illegal and unenforceable because it would bar customers from participating in class actions or recovering.” Although this case was not exactly like the Toppings case, it added further insight. The final verdict was that MSS was guilty not only for trying to manipulate the Toppings but for picking the NAF, an arbitration forum known for siding with the lenders. Once again, the arbitrational clause caused more damage than good for the business (“West Virginia”).

Arbitrational clauses are also appearing in employee contracts. In the case of EEOC (Equal Employment Opportunity Commission) v. Waffle house an arbitrational clause was argued over the employee’s right to litigate over matters such as “unlawful employment practices…[the right] to pursue reinstatement, back pay, compensatory damages, and punitive damages.” Upon knowledge of the case, the Waffle House contacted the court system asking that the case be thrown out due to the arbitration clause. The court found the Waffle House guilty and the case was brought to court. Before the 4th circuit, it was decided that the Waffle House arbitration clause was legitimate. However, when appealed before the Supreme Court, the ruling was overturned and the Waffle House was found guilty(Gold) .

Just as all of these cases have proven, arbitrational clauses do not hold up well during litigation. Most of the time the business is trying to get out of a bad reputation by being brought to court but in the long run suffer the same reputation by being brought to court due to the arbitrational clause. In the future I do not see as many arbitrational clauses due to the fact that the business comes off looking deceitful. Although they may solve some problems, arbitrational clauses are not necessary to have in all contracts. When writing an arbitrational clause, it would be wise to look into what is being taken away from the consumer.

References

About Autism. (n.d.). Hoboken: ASA: Association for Science in Autism Treatment. Retrieved from http://www.asatonline.org
American Psychiatric Association. (2013). Diagnostic and statistical manual of mental disorders (5th ed.). Washington, DC: American Psychiatric Publishing.
Autism Spectrum Disorder (ASD). Centers for Disease Control and Prevention. Retrieved from http://www.cdc.gov
Buchanan, S. M., & Weiss, M. J. (2006) Applied behavior analysis and autism: An introduction. Ewing: COSAC: The New Jersey Center for Outreach & Services for the Autism Community.
Harris, S. L., & Handleman, J. S. (2000) Age and IQ at intake as predictors of placement for young children with autism: A four- to six-year follow-up. Journal of Autism and Developmental Disorders, 30(2), 137-142
Hourcade, J. P., Bullock-Rest, N. E. & Hansen, T. E. (2012) Multitouch tablet applications and activities to enhance the social skills of children with autism spectrum disorders. Personal and Ubiquitous Computing 16 (2). http://homepage.divms.uiowa.edu/~hourcade/asd-puc-publicversion.pdf.
McNaughton, D., & Light, J. (2013). The iPad and mobile technology revolution: Benefits and challenges for individuals who require augmentative and alternative communication.
Ploog, B. O., Sharf, A., Nelson D., & Brooks P. J. (2013). Use of computer-assisted technologies (CAT) to enhance social, communication, and language development in children with autism spectrum disorders. Journal of Autism and Development 43(2), 301-322.
Sallows, G. O., & Graupner, T. D. (2005). Intensive behavioral treatment for children with autism: Four-year outcome and predictors. American Journal on Mental Retardation 110(6), 417-438.
Szatmari, P. (2003). The causes of autism spectrum disorders. British Medical Journal 326 (7382), 173-174. Retrieved from http://www.ncbi.nlm.nih.gov
What Is Autism? (2014).What is autism? Autism Speaks Inc. Retrieved from http://www.autismspeaks.org
Gold, Sidney, and Hyman Lovitz. “Agreements Don’t Supersede Authority to Recover Damages.” The Legal Intelligencer. 6 June 2002: 6. Online. LexisNexis Academy. 30 September 2002.
Hackbarth, Margaret. “Florida Arbitration Clause May Be Unenforceable.” Mondaq Business Briefing. 19 July 2002. Online. LexisNexis Academy. 30 September 2002.
“West Virginia Court Finds Lender’s Arbitration Clause Biased and Unfair.” Consumer Financial Services Law Report. 31 July 2002. Online. LexisNexis Academy. 30 September 2002.

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