We Have an Arbitration Agreement. Now What?

Be mindful of key issues with enforcing consumer arbitration agreements.

, New York Law Journal


Mark Spatz, Matthew V. Povolny and Nicole Paschal of Cohen & Gresser write: Because the terms of consumer arbitration agreements are generally not negotiable and the agreements themselves are not formed through the typical means of offer and acceptance, courts take great care in analyzing whether an arbitration provision should be enforced against a consumer. Some issues are more easily addressed than others. A company should be mindful of the issues when seeking to enforce the arbitration provision it offers to consumers with its products.

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What's being said

  • Matthew Siegel

    Interesting article, but it would have been more impactful if it discussed specific instances in which an arbitration agreement was found to be unconscionable, in particular procedurally unconscionable. For example, isn‘t there a lack of meaningful choice when you apply for a job on a company‘s website containing an arbitration/class action waiver clause governing future employment disputes, which must be assented to by the prospective employee as condition of completing such job application, or in other take-it-or-leave-it scenarios regarding the purchase of necessary consumer goods and services?

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