The enforceability of franchise arbitration agreements took center stage in the Ninth Circuit Court of Appeals en banc decision in Nagrampa v. Mailcoups, Inc., American Arbitration Ass'n. (2006) __ F.3d __, 2006 WL 3478345 ('Nagrampa II'.)
Appeals Court: Courts Decide Enforceability of Franchise Arbitration Provision
The enforceability of franchise arbitration agreements took center stage in the Ninth Circuit Court of Appeals en banc decision in <i>Nagrampa v. Mailcoups, Inc., American Arbitration Ass'n.</i> (2006) __ F.3d __, 2006 WL 3478345 ('<i>Nagrampa II</i>'). In a 7-4 ruling reversing the decision of the three-judge panel upholding arbitration ('<i>Nagrampa I</i>,' 401 F.3d 1024), the <i>Nagrampa II</i> court struck down the arbitration clause under California principles of unconscionability. Along the way, the court made significant holdings and observations that should garner the attention of franchise practitioners on both sides of the aisle.
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Robert S. BoulterThis premium content is locked for LawJournalNewsletters subscribers only
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