Herb is the HR Professional for his organization. He is preparing to hire a new employee, Hans, to the firm. Herb has asked Hans to agree, in…

Mandatory arbitration helps the organization avoid lawsuits, should any arise, between the

employee and the employer, by agreeing up-front to settle potential disagreements through an

arbitrator versus a lawsuit.

Answer option D is incorrect. This answer describes a non-compete agreement.

Answer option C is incorrect. This isn't a valid answer for the mandatory arbitration agreement.

Answer option B is incorrect. Hans doesn't need to file legal complaints with his employer under this

agreement. The agreement means that Hans and the employer will settle the problem without a

lawsuit.