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Case Study : Lopez V. Kmart Corporation Essay

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Case: Lopez v. Kmart Corporation (2015) Facts: Defendant (Kmart) allegedly failed to provide to plaintiff (Lopez) the written wage statements. The availability of the wage statements is required under California labor code. Under the agreement, employment-related issues between the employee and company shall be resolved informally or by binding arbitration. This replaces the right of either party to go to court or have a jury decide the outcome of the claims. Lopez alleges that the agreement was never valid due to the fact that he was a minor when he acknowledged the agreement and is now entitled to revoke his consent. Issues 1. Does a valid, enforceable contract exist? 2. Is Kmart 's Motion to Compel Arbitration and Stay Action warranted? Holding 1. A valid, enforceable contract does not exist. 2. Kmart 's Motion to Compel Arbitration and Stay Action is denied. Rule 1. "In California, the elements for a viable contract are 1) parties capable of contracting; 2) their consent; 3) a lawful object; and 4) sufficient cause or consideration." In regards to a minor 's capacity to contract, a minor is capable of contracting unless specifically prohibited. However, Section 6710 of the California Family Code states that "except as otherwise provided by statute, a contract of a minor may be disaffirmed by the minor before majority or within a reasonable time afterwards." Application 1. The lawful object was the arbitration of any employment-related issues. Sufficient

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