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American Contract Law for a Global Age, 2017a

American Contract Law for a Global Age, 2017a

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disputes specifically set <strong>for</strong>th in the grievance and arbitration provisions<br />

on pages 8-10 of the Manual.<br />

Later that day, she was given a copy of the Manual. It provided that if an employee<br />

claimed a violation of anti-discrimination law by the hospital,<br />

THEN IT IS CLEARLY INTENDED AND AGREED THAT THE SOLE<br />

AND EXCLUSIVE MEANS FOR THE RESOLUTION OF ALL<br />

DISPUTES, ISSUES, CONTROVERSIES, CLAIMS, CAUSES OF<br />

ACTION OR GRIEVANCES BY AN EMPLOYEE AGAINST<br />

NEIGHBORHOOD HEALTH CLINICS SHALL BE THROUGH THE<br />

PROCESS OF ARBITRATION AND PURSUANT TO THE INDIANA<br />

UNIFORM ARBITRATION ACT.<br />

The opening two paragraphs of the Manual include the following language:<br />

[The hospital] reserves the right at any time to modify, revoke, suspend,<br />

terminate, or change any or all terms of this Manual, plans, policies, or<br />

procedures, in whole or in part, without having to consult or reach<br />

agreement with anyone, at any time, with or without notice.<br />

While [the hospital] intends to abide by the policies and procedures<br />

described in this Manual, it does not constitute a contract nor promise<br />

of any kind. There<strong>for</strong>e, employees can be terminated at any time, with<br />

or without notice, and with or without cause.<br />

Mona was subsequently fired and sued <strong>for</strong> discrimination in federal court. The<br />

hospital moved to dismiss the suit and refer it to arbitration. Mona argued that there<br />

was no consideration <strong>for</strong> her agreement to the new policy because she had already<br />

started work be<strong>for</strong>e she signed it. What result?<br />

Problem 8.3<br />

Kümmerbünd is a relatively unknown musical group, which has agreed to play<br />

a concert at Club Now, a popular music venue, <strong>for</strong> a flat fee of $2.500. After the<br />

contract is signed, but several weeks be<strong>for</strong>e the per<strong>for</strong>mance, Kümmerbünd is<br />

suddenly catapulted to fame with the success of a new single, “Smell the Glove,” a<br />

cover version of an old Spinal Tap song. Kümmerbünd now has many offers to<br />

per<strong>for</strong>m at much higher prices. Kümmerbünd calls Club Now and says that it will not<br />

per<strong>for</strong>m unless the payment is increased to $10,000. Club Now at first tries to insist<br />

on the original deal, but finally gives up and agrees to pay $10,000.<br />

On the night of the concert, Club Now triples the cover-charge and sells out<br />

every seat, clearing $25,000 in profit. When Kümmerbünd asks <strong>for</strong> payment, Club<br />

Now gives them a check <strong>for</strong> $2,500. Kümmerbünd demands the remainder. Club Now<br />

______________________________________________________________________________<br />

UNIT 8: SPECIAL ISSUES WITH CONSIDERATION 153

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