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Hale and Dorr: Click-Wrap Agreement Found Not to be an Unenforceable A... Apr 25, 2003
Hale and Dorr LLP - Publications - Click-Wrap Agreement Found Not to be an Unenforceable Adhesion Contract hot off the pressemail alertsarchive searchsign up for legal updates Click-Wrap Agreement Found Not to be an Unenforceable Adhesion Contract April 25, 2003 On August 30, 2002, the U.S. District Court for the Northern District of California's decision in Comb v. PayPal, Inc. created serious concerns that a click-wrap agreement presented to a consumer would not be enforced if the consumer did
Seyfarth Shaw: California Labor & Employment Law Update Mar 01, 2003
When PSM requested to submit the claims to arbitration, Fittante argued that the arbitration agreement was an unconscionable adhesion contract barred by the California Supreme Courts ruling on arbitration agreements in the case of Armendarriz v. Foundation Health Psychcare Services, Inc. The court found that the agreement was valid, with the exception of the requirement that the agreement provide all types of relief available in court. Then, the court pointed out that after establishing a
Loeb & Loeb: Recent Developments In Alternative Dispute Resolution Jan 01, 2003
B. Courts of Appeals, District Courts, and State Courts In 2001, the U.S. Supreme Court decided Circuit City Stores, Inc. v. Adams,15 reversing an earlier ruling by the Ninth Circuit that had excluded employment contracts from the FAA. On remand, the Ninth Circuit applied California law to the agreement at issue, finding it procedurally and substantively unconscionable and holding once again that the agreement was unenforceable. In Adams III, procedural unconscionability was found to exist in a
Sheppard Mullin: The Enforcement of Residential Purchase Contracts Nov 01, 2002
Each of the contracts between the buyers and Pardee contained a provision which required any "agreement related" claims to be heard by judicial reference. The contract further provided that in the event the judicial reference provisions were found unenforceable, any "agreement-related" claims would be tried to a court, without a jury
Goodwin Procter: Draft of Free Trade Area Treaty of the Americas Address... Sep 01, 2002
The E-commerce Measures also include rules governing the formation of BtoC contracts, providing that the e-commerce operator must send the consumer an email confirming the terms and conditions of the sale before a binding contract comes into existence, as well as specifying when such email can be deemed to have been received by the consumer. National rules on electronic signatures have been drafted by the Ministry of Foreign Trade and Economic Cooperation, and once enacted, these are expected to
Littler Mendelson: An Arbitration Provision With a Waiver of a Jury Trial ... Aug 01, 2002
Next, the court confirmed that agreements to arbitrate are to be construed like any other contract. The majority of the judges concluded that traditional contract formation principles, i.e., an offer, acceptance, and consideration, govern whether an arbitration agreement will be enforceable
O'Melveny & Myers: Class Action Plaintiffs' Lawyers Continue To Chall... Jul 19, 2002
These plaintiffs argue that arbitration clauses are unenforceable under state contract law because they are "unconscionable." In the last few months, a handful of state and federal courts have found certain types of arbitration clauses unconscionable--and therefore unenforceable--where their terms preclude the availability of the class action device. Since the doctrine of unconscionability applies to all contracts, this conceivably could be a valid basis for refusing to enforce contractual
Manatt: EmploymentLaw@manatt Jun 17, 2002
In the Chevron case, the employee worked for various maintenance contractors at one of Chevron's oil refineries for 20 years. Accordingly, Chevron refused to hire the employee and asked the contractor to move him off site
Lane Powell: Competing For Talent And Protecting Business Value May 27, 2002
7 Duties of employees and contractors. Restatement (Second) of Contracts § 188 cmt
Manatt: EmploymentLaw@manatt Feb 26, 2002
The Ninth Circuit concluded that the DRA was procedurally unconscionable because it was an adhesion contract, drafted by the employer, who had considerably more bargaining power than its employees had. Moreover, the Ninth Circuit noted that the DRA was unconscionable because "[t]he agreement is a prerequisite to employment, and job applicants are not permitted to modify the agreement s terms they must take the contract or leave it." In concluding that the DRA was substantively unconscionable,
Piper Rudnick: FranCast: Is Your Arbitration Clause Enforceable? Oct 19, 2001
Morgan Lewis: California Supreme Court Approves Mandatory Predispute ... Sep 01, 2001
The Court also held that predispute arbitration agreements are generally enforceable with respect to nonstatutory claims, such as termination in violation of contract or the covenant of good faith and fair dealing, notwithstanding that the agreements are generally adhesion contracts imposed by employers. The employees' complaint against Foundation included a cause of action for violation of the FEHA and three additional causes of action for wrongful termination based on tort and contract
King & Spalding: Drafting The ICC Arbitral Clause Jun 21, 2001
...course of drafting their agreement to arbitrate, the parties to an international contract may to an extent design the manner in which the arbitral proceedings are conducted. contracts: All disputes arising out of or in connection with the present contract shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with the said Rules
King & Spalding: A Practical Guide for Drafting International Arbitratio... Jun 21, 2001
5 Unified Contractual Scheme. 56 Adaptation of Contracts and Gap Filling
Thelen Reid: Indian Tribe Waived Sovereign Immunity by Agreeing to A... Jun 11, 2001
Indian Tribe Waived Sovereign Immunity by Agreeing to Arbitration in AIA Contract Economic Loss Rule InapplicableEngineer Held Liable to Subcontractor for Defects in Plans, Specifications, Inspections Unjust EnrichmentConstruction Lender Required to Pay Contractor for Value of Work Performed after Halting Funding Without Telling the Contractor Private FundingN.Y. Governor Signs Lien Law Amendment Protecting Contractors and Subcontractors on Public Projects Modernized But ControversialNew Federal
Hill Farrer & Burrill: Court Denies Enforcement Of Arbitration Agreement Dec 01, 2000
The court, in Ramirez v. Circuit City Stores, Inc., concluded that the arbitration agreement amounted to an unenforceable adhesion contract because the employee was given no opportunity to bargain over its terms and onerous provisions described above were unconscionable. This case serves to highlight the advantage of enabling employees to pursue all the rights and remedies that they would otherwise be afforded in a court of law
Hill Farrer & Burrill: Court Denies Enforcement Of Arbitration Agreement Dec 01, 2000
The court, in Ramirez v. Circuit City Stores, Inc., concluded that the arbitration agreement amounted to an unenforceable adhesion contract because the employee was given no opportunity to bargain over its terms and onerous provisions described above were unconscionable. This case serves to highlight the advantage of enabling employees to pursue all the rights and remedies that they would otherwise be afforded in a court of law
King & Spalding: A Practical Guide for Drafting International Arbitratio... Oct 17, 2000
Unified Contractual Scheme. Adaptation of Contracts and Gap Filling
Manatt: The California Supreme Court Uphold Binding Arbitration... Aug 29, 2000
The trial court denied the motion on the grounds that the arbitration agreement was an "adhesion contract", i.e. a standardized contract imposed by the party with superior bargaining strength, and that it contained provisions that were so one-sided as to "shock the conscience". The California Court of Appeal agreed that the agreement at issue was a contract of adhesion and unconscionable in its limitations, but concluded that portions of the agreement were enforceable
Morrison & Foerster: California Supreme Court Denies Review in Badie v. Bank... Feb 26, 1999
It concluded that, under ordinary principles governing contract formation, the Bank s attempted modification of the cardmember agreements was ineffectual because a modification is limited to "the universe of terms included in the original agreements" and the forum for resolution of disputes was not "integral to the Bank/creditor" relationship. Accordingly, the Court held that the clause could not be applied to credit card accounts of the four individual plaintiffs
Morrison & Foerster: California Supreme Court Denies Review in Badie v. Bank... Feb 26, 1999
It concluded that, under ordinary principles governing contract formation, the Bank s attempted modification of the cardmember agreements was ineffectual because a modification is limited to "the universe of terms included in the original agreements" and the forum for resolution of disputes was not "integral to the Bank/creditor" relationship. Accordingly, the Court held that the clause could not be applied to credit card accounts of the four individual plaintiffs
White & Case: California Supreme Court Rules on Mandatory Arbitration...
The trial court found it to be an adhesion contract and found the provision so one-sided as to shock the conscience, particularly because it required arbitration only of the employee s claim against the employer and not the employer s claims against the employee, and because it limited the damages an employee could recover. applies to employment contracts
