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Recently, Dillards learned first hand why using an electronic contract automation Software as a Service like ContractPal is important (Kerr vs. Dillard Store Services).
On their Intranet, Dillards offers various employment related agreements including an arbitration agreement. An employee, Yolanda Kerr didn’t want to sign the agreement. Apparently a manager, who had the rights to manage Yolanda’s password reset it and somehow during the process, the arbitration agreement got signed.
The Kansas US District Court considering the matter held that the agreement was unenforceable because Dillards couldn’t meet their burden of proof to establish that Kerr had signed the agreement. Not only did the court hold that Dillards couldn’t prove the Kerr signed the agreement but also that Dillards couldn’t prove that she may have done so by accident or mistake.
Whether the arbitration agreement was enforceable wouldn’t have been an issue had Dillards used ContractPal. Employers who use ContractPal don’t have access to change user passwords. Only employees can reset their own passwords, and when dealing with personal agreements like employment related agreements, agreements can be associated with personal profiles to improve their enforceability. In addition, an agreement on ContractPal cannot be signed by accident or mistake. Agreements are directly presented to users in a fully enforceable signing ceremony.
