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Substantive unconscionability

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Overview Edit

Even if an agreement is procedurally unconscionable, it may nonetheless be enforceable if the substantive terms are reasonable.[1]

Arbitration clause Edit

Substantive unconscionability can occur in cases based upon arbitration provisions requiring arbitration of the weaker party's claims but permitting a choice of forums for the stronger party.[2]

Choice of forum clause Edit

Although it is true that forum selection clauses generally are presumed prima facie valid, a forum selection clause may be found substantively unconscionable if the "place or manner" in which arbitration is to occur is unreasonable taking into account "the respective circumstances of the parties."[3]

References Edit

  1. See Craig v. Brown & Root, Inc., 84 Cal.App.4th 416, 422-23, 100 Cal.Rptr.2d 818 (2000)(full-text) (finding contract of adhesion to arbitrate disputes enforceable).
  2. See, e.g., Ticknor v. Choice Hotels Int'l, Inc., 265 F.3d 931, 940-41 (9th Cir. 2001)(full-text); Mercuro v. Superior Court, 96 Cal.App.4th 167, 176, 116 Cal.Rptr.2d 671 (2002).(full-text)
  3. Bolter v. Superior Court, 87 Cal.App.4th 900, 909, 104 Cal.Rptr.2d 888 (2001).(full-text)

See also Edit

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