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.
Without a valid arbitration agreement, no arbitration can take place or award can be rendered. In other words, a valid arbitration agreement is the cornerstone of any arbitration proceedings. Townsend, J.M., Drafting Arbitration Clauses: Avoiding the 7 Deadly Sins, Dispute Resolution Journal, 2003, p. 1.
(1) An agreement contained in a record to submit to arbitration any existing or subsequent controversy arising between the parties to the agreement is valid, enforceable, and irrevocable except upon a ground that exists at law or in equity for the revocation of contract.
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.
Arbitration must be commenced as follows: (a) If the matter is not settled through mediation under RCW 11.96A. 300, or the court orders that mediation is not required, a party may commence arbitration by serving written notice of arbitration on all other parties or the parties' virtual representatives.
See 9 U.S.C. § 1. In Concepcion, the U.S. Supreme Court ruled that class action waivers in arbitration agreements are enforceable.
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.
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.