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Full-Text Articles in Law
Fighting Arbitration Clauses In Franchisor Contracts, Jean R. Sternlight
Fighting Arbitration Clauses In Franchisor Contracts, Jean R. Sternlight
Scholarly Works
Purporting to serve justice, efficiency, and freedom of contract, business interests are increasingly attempting to use binding arbitration clauses to secure unfair advantages over unknowing parties. Courts seemingly have been eager to enforce arbitration clauses that appear in franchise agreements. This article discusses courts’ enforcement of arbitration clauses, undermining protections to the franchisee, and how franchisees can create a more level playing field.
Protecting Franchisees From Abusive Arbitration Clauses, Jean R. Sternlight
Protecting Franchisees From Abusive Arbitration Clauses, Jean R. Sternlight
Scholarly Works
This article sets out a number of legal arguments that franchisees can potentially use to defeat arbitration clauses that seek to accomplish ends that would not be permissible in litigation. Drawing from decisions protecting consumers and employees from unfair arbitration clauses, as well as from opinions in the franchise context, this article analyzes arguments that can be based on the U.S. Constitution, federal statutes, state statutes, and common law. By way of this analysis, it suggests that some courts are misapplying arbitration precedents and preemption arguments to support decisions that allow franchisors to effectively exempt themselves from legislation and even …