Quote:
A party cannot be compelled to submit to general arbitration unless there is a contractual basis for concluding that the party agreed to do so. However, class arbitration is a specific kind of arbitration that changes the nature of general arbitration to such a degree that it cannot be presumed that parties consented to class arbitration simply by agreeing to submit their disputes to an arbitrator.
Which of the following statements is best supported by the passage above?
A) Generally, class arbitration and general arbitration are used for different kinds of disputes.
B) A company cannot sign a contract with another company that allows it to pursue class arbitration even before opting for general arbitration.
C) In some scenarios, general arbitration can be pursued even if one of the parties is unwilling to get into the arbitration.
D) If the arbitrator decides so, then a company can be subjected to class arbitration because it agreed to settling the disputes through general arbitration.
E) Even if there is a contractual basis for class arbitration, a party cannot be compelled to enter in to it if it prefers to opt for general arbitration instead.
OFFICIAL EXPLANATIONConclusion Clarification
N/A
Pre-Thinking Approach
The question requires us to find a statement which can be inferred from the passage. For that, we need to look at the given facts closely and come up with an inference that is either a combination of the two facts or a restatement of the given information in different words. Accordingly, from A party can’t be compelled for GA (reference: logical structure diagram above), we can infer that:
A prior CB for GA is a must if one of the parties wishes to enforce GA.
Combining A party can’t be compelled for GA and CA changes the nature of GA(reference: logical structure diagram above), we can also infer that:
A contract for GA could be used to enforce GA but not necessarily CA.
With this understanding in mind, let’s take a look at the option statements.
Answer Choices
A. Generally, class arbitration and general arbitration are used for different kinds of disputes.
Incorrect - No information given
The passage doesn’t provide any information regarding the kind of disputes where CA or GA is used.
B. A company cannot sign a contract with another company that allows it to pursue class arbitration even before opting for general arbitration.
Incorrect - No information given
The passage doesn’t provide any information regarding the order in which these contracts can be signed.
C. In some scenarios, general arbitration can be pursued even if one of the parties is unwilling to get into the arbitration.
Correct
This choice is written along the lines of our pre-thinking per Statement 1. Even if one of the parties is unwilling to get into arbitration but had signed a contract for the same, GA can be pursued.
D. If the arbitrator decides so, then a company can be subjected to class arbitration because it agreed to settling the disputes through general arbitration.
Incorrect - Against the given information
This option goes against CA changes the nature of GA (ref.: logical structure diagram) that states that agreement to GA can’t be taken as a basis for CA.
E. Even if there is a contractual basis for class arbitration, a party cannot be compelled to enter in to it if it prefers to opt for general arbitration instead.
Incorrect - No information given
The passage doesn’t provide any information regarding how preference of a party changes the situation.