Question

In Green Tree Financial Corporation v. Randolph, Randolph brought suit in federal court for violation of a federal statute that regulates consumer lending. Green Tree moved to dismiss based on a mandatory arbitration clause in the consumer contract. How did the court decide?
A.for Green Tree because the consumer protection law itself required mandatory arbitration before a law suit could be brought
B.for Green Tree because Randolph had not proven that the mandatory arbitration clause was unfair or biased toward the defendant negating his rights
C.for Randolph because the mandatory arbitration clause was silent regarding the location of the required arbitration so that flaw invalidated the clause due to the potential harm to Randolph should a distant or inconvenient forum be utilized
D.for Randolph because the Federal Arbitration Act requires that matters involving federal law be litigated rather than arbitrated

Answer

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