Assume Emilia opted to arbitrate her claim against MegaTron, and the arbitrator awarded her $2,000,000 in punitive damages. MegaTron's officers were appalled and filed a lawsuit seeking to set aside the arbitrator's award. On what basis could a court overturn the arbitrator's award?

A) That Emilia may have been lying when she testified during the arbitration.
B) That Emilia did not want to arbitrate.
C) That the arbitrator misused his authority in making the award.
D) That the parties agreed in advance not to give closing statements.
E) That the arbitrator told the parties in advance that he worked at MegaTron thirty years ago and disclosed this fact in writing.

Question

Hannah Falls · Accepted Answer

Final Answer : C, Explanation :  Courts can overturn an arbitrator's award if it's found that the arbitrator exceeded their powers or so imperfectly executed them that a mutual, final, and definite award upon the subject matter submitted was not made. Misuse of authority by the arbitrator, such as awarding punitive damages not allowed under the arbitration agreement or applicable law, could be a valid reason for a court to set aside the award.

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