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Victor signs an arbitration agreement providing that he will arbitrate any disputes with his employer, Business Corp. Victor believes that Business Corp. has discriminated against him in violation of the Americans with Disabilities Act. The EEOC also investigated the situation and brought an action against Business Corp. alleging that Business Corp. discriminated against Victor in violation of the Americans with Disabilities Act. What is the effect of the arbitration clause in regards to the action brought by the EEOC?

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Answer:

The arbitration clause signed by Victor and Business Corp. is binding to them only. That means that they must resolve their disputes using an arbitrator. But that clause has no effect on the Equal Employment Opportunity Commission (EEOC) and any of the actions that it decides to take against Business Corp. Government entities are not affected by arbitration clauses, since breaking the law cannot be made solved by an arbitrator.

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