Arnold Preston (an attorney) and Alex Ferrer (from Judge Alex on TV) entered a contract in which Preston agreed to be Ferrer’s personal manager for some of the earnings from a possible television deal. Within the contract, there was a clause that stated any disputes with the validity of the contract must be settled through arbitration. A few years later, Preston filed a lawsuit with the American Arbitration Association against Ferrer, claiming that he was owed earnings from that contract. Ferrer said that the entire contract was invalid under the California Talent Agencies Act, which states that the parties must deplete their administrative remedies by sending the dispute to the California Labor Commissioner before an arbitrator or a court can hear the case. He also claimed that under the California Labor Code Section 1700.5, Preston was acting as an unlicensed manager.…show more content… The question for the court is: “should the arbitration clause of a contract overrule an administrative agency’s exclusive jurisdiction of the issue at hand?” The offer was present in this deal as Ferrer (offeror) proposed to Preston (offeree) that he should be his personal manager, and an acceptance was made. The genuine agreement here is debatable because while one party followed through, the other party did not; they may have had the truthful intention of going through with the deal, but something barred it from happening. Consideration was not in place because Preston did not receive payment for his work. Both Preston and Ferrer have capacity because they are both unintoxicated adults and are in stable states of mind. This contract did not have legality because it violates the California Talent Agencies Act; also, Preston is not authorized for the
