Arbitration is under judicial and legislative attack. Late last year, the Ninth Circuit Court of Appeals held an unexceptional arbitration agreement to be substantively unconscionable simply because it allowed the franchisor to litigate certain trademark-related claims and gave the franchisor home court advantage.
Enforceability of Pre-Dispute Jury Waivers: An Update
Arbitration is under judicial and legislative attack. Late last year, the Ninth Circuit Court of Appeals held an unexceptional arbitration agreement to be substantively unconscionable simply because it allowed the franchisor to litigate certain trademark-related claims and gave the franchisor home court advantage. <i>Nagrampa v. Mailcoups, Inc.</i>, 469 F.3d 1257 (9th Cir. 2006). On July 12, 2007, Sen. Russ Feingold (D-WI) introduced Senate Bill 1782, known as the 'Arbitration Fairness Act of 2007,' a key provision of which would invalidate pre-dispute agreements to arbitrate franchise disputes.
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