Beating Forced Arbitration

is Easy - Here's Why

Arbitration Agreements in the U.S.A. Cannot and Do NOT shield any Legal Person or Entity before, after, or during, their act(s) of violating Public Law(s)

What makes an arbitration agreement unenforceable?

Arbitration clauses are often enforced according to contract law principles. However, some jurisdictions hold them unenforceable if there has been any fraud, overreaching, or the absence of mutuality with terms such as “any,” “all,” or “every” (as opposed to “some”) in the arbitration clause.

What disputes cannot be arbitrated?

Some types of cases cannot be arbitrated. Most matters that involve family law, immigration law or criminal law cannot be arbitrated, because the parties cannot enter into an agreement on those matters without restriction.

What makes an arbitration agreement unconscionable?

Unconscionability requires a showing of both a procedural and substantive defect in the document for the agreement to be rendered unenforceable by the court.

Definitions for the legal meaning of the word "unconscionable"

Unconscionable is an adjective that means without a conscience; unscrupulous; so unfair or unjust that it shocks the conscience.

The adjective is frequently used in the context of contract law for contracts that have grossly oppressive and unfair terms.

When a court finds a contract unconscionable, it is unenforceable.

What is an example of an unconscionable contract?

A typical example of an unconscionable contract occurs when one party is an experienced dealer in a certain type of business and the other party is an average customer.

What is the two prong test for unconscionability?

The court uses a two prong test for unconscionability: (1) whether one of the parties had no meaningful choice, and (2) whether the contract terms unreasonably favored one party.

U.S. House Passes Bill that Places Future of Arbitration Agreements at Risk

On March 17th, 2022

U.S. House passed the Forced Arbitration Injustice Repeal (“FAIR”) Act of 2022 (H.R. 963), which puts the future of many, if not all, arbitration agreements in jeopardy.

The potential consequences of this act are far-reaching and extend well beyond employment matters. The FAIR Act, if passed in the Senate, would invalidate pre-dispute arbitration agreements in employment, consumer, antitrust, and civil rights disputes. It would also prohibit agreements and practices that prevent individuals from participating in a class or collective action in such matters. As a result, arbitration agreements and class action waivers would be prohibited in a wide variety of agreements, implicating anything from an employment contract to a credit card agreement.

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