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

Question

Quizplus · Accepted Answer

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.

In What Situations Would a Court Most Often Strike Down