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In Allen v. Bloomingdale's, Inc., what did the court deem as the necessary elements for a valid contract? Did the court find that Bloomingdale's arbitration agreement was valid and enforceable?

In Allen v. Bloomingdale's, Inc., the court presented the elements necessary for a valid contract, namely “a meeting of the minds,” “an offer and acceptance,” “consideration,” and “certainty in the terms of agreement.” The court ruled that Bloomingdale's arbitration agreement was valid and enforceable because it contained all of these elements.

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In the case of Allen v. Bloomingdale's, Inc. , two women sued Bloomingdale's complaining that they were fired because of their race and gender. Bloomingdale's claimed that the women were actually fired because they violated the store's employee return policy. Moreover, Bloomingdale's claimed that the case should never even be...

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In the case of Allen v. Bloomingdale's, Inc., two women sued Bloomingdale's complaining that they were fired because of their race and gender. Bloomingdale's claimed that the women were actually fired because they violated the store's employee return policy. Moreover, Bloomingdale's claimed that the case should never even be in court because when the two women were hired, they did not opt out of the store's arbitration agreement (although they had the chance to do so). Bloomingdale's was asking the court, therefore, to dismiss the case and send the complaint to arbitration.

The plaintiffs claimed that the arbitration agreement was not enforceable because it was a private agreement and because, while they admitted to receiving documents about their privilege to opt out, these documents were too confusing and deceiving. They wanted the court to rule that the contract with the arbitration agreement was invalid.

The court presents the required elements of a valid contract in its discussion. These are 1. “a meeting of the minds” (i.e., both parties know what is going on); 2. “an offer and acceptance”; 3. “consideration”; and 4. “certainty in the terms of the agreement.” The plaintiffs argued that there was not a meeting of the minds and that they were not well informed about the nature of arbitration. Upon looking at Bloomingdale's documents, however, the court did not agree. The definitions and circumstances of arbitration and the ability to opt out were perfectly clear and well explained. There was no reason at all that employees should be confused about anything in the documents.

The court, therefore, ruled that Bloomingdale's arbitration agreement was valid and enforceable, and it ordered that the complaint should proceed to arbitration since the plaintiffs had not opted out at the time of their hire.

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