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Circuit City Stores, Inc. v. Najd

294 F.3d 1104 (2002)

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Circuit City Stores, Inc. v. Najd

United States Court of Appeals for the Ninth Circuit

294 F.3d 1104 (2002)

Facts

Monir Najd (plaintiff) worked for Circuit City Stores, Inc. (Circuit City) (defendant). Circuit City began an employee dispute-resolution program, as part of which it instituted an arbitration program. Circuit City distributed a dispute-resolution agreement (DRA) to employees providing that all employment disputes would be settled by arbitration and offered them the ability to opt out. The acknowledgment form outlined the consequences of not opting out. Najd acknowledged receipt of the DRA in writing and did not opt out. Subsequently, Najd claimed that his new supervisor began to harass him due to his ethnicity. Ultimately, the supervisor fired Najd. Najd sued Circuit City in state court for discrimination. Circuit City petitioned the federal district court to stay the state court proceeding and compel arbitration pursuant to the DRA and the Federal Arbitration Act (FAA). Najd argued that the arbitration agreement lacked consideration and that he never assented to it.

Rule of Law

Issue

Holding and Reasoning (O’Scannlain, J.)

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