See 9 U.S.C. § 1. In Concepcion, the U.S. Supreme Court ruled that class action waivers in arbitration agreements are enforceable.
However, employers that mandate arbitration often include class-action waivers in their employment contracts. This prevents workers from litigating their cases jointly, and instead requires them each to proceed with their relatively small individual claims through arbitration.
Unconscionability requires a showing of both a procedural and substantive defect in the document for the agreement to be rendered unenforceable by the court. Procedural unconscionability results from oppression or unfair surprise to one party caused by unequal bargaining power.
Under binding arbitration, as is required here, the parties agree to accept the arbitrator's decision as final, limiting their right to seek resolution of the dispute by the court.
drafted arbitration clause can kill a class action in its infancy. Therefore, when evaluating a consumer class action case, you should attempt to determine whether the putative plaintiff is in a contractual relationship with the defendant business.
1 In the context of arbitration, waiver occurs when a party consciously and intentionally gives up its right to arbitrate a particular dispute, thereby choosing litigation as the preferred method of dispute resolution.
What is compulsory arbitration in the Pennsylvania Courts of Common Pleas? Pursuant to the Pennsylvania Judicial Code, compulsory arbitration is authorized within each county, and each county sets an aggregate amount in controversy for which arbitration shall be required.