Asked by Samantha Townsend on Jul 14, 2024
Verified
In what situations would a court most often strike down an arbitration clause as unconscionable?
A) Contracts between merchants
B) Contracts between corporations
C) Contracts between businesses and their vendors
D) Consumer and employment contracts
E) Courts never strike down arbitration clauses as unconscionable
Arbitration Clause
A provision in a contract that requires disputes to be resolved through arbitration rather than in court.
Unconscionable
Not right or reasonable; especially in a legal context to describe terms that are so unfair to one party that no reasonable or informed person would agree to them.
- Assess the validity of arbitration clauses across different scenarios, including those in employment and consumer contracts.
- Understand the restrictions and criticisms pertaining to arbitration.
Verified Answer
AS
Anshika SrivastavaJul 15, 2024
Final Answer :
D
Explanation :
Courts are most likely to strike down arbitration clauses as unconscionable in consumer and employment contracts, especially when there is a significant imbalance of power between the parties, such as a large corporation versus an individual consumer or employee. This is because these clauses can sometimes unfairly limit the rights of the weaker party to seek redress in court.
Learning Objectives
- Assess the validity of arbitration clauses across different scenarios, including those in employment and consumer contracts.
- Understand the restrictions and criticisms pertaining to arbitration.
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