When Holloman applied for a job at Circuit City, she signed a \"Dispute Resoluti

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 with Circuit City." The job application then added, "Circuit City will consider your application only if this agreement is signed." Finally, the DRA contained this statement: "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 later quit and sued Circuit City, claiming she had been discriminated against and constructively discharged. Holloman argued that the arbitration agreement was illiory 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.[Holloman v. Circuit Stores, 162 Md. App. 332 Md. Ct. App. 2005)]

Explanation / Answer

The court should rule in favour of arbitration and should stay the judicial proceedings .

Reasons for favour of arbitration : - Appellee agreed to be bound to give appellant notice before altering the terms of the arbitration agreement, and appellant would then have had an opportunity to decline to continue her employment under appellee's new terms, it can be said that their agreement was supported by consideration. The court should pass the judgement that makes both the parties agree for arbitration .

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