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Fighting Arbitration Clauses In Franchisor Contracts, Jean R. Sternlight Jan 2000

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.


Federalism Versus The Greater Good ... Should Powerful Franchisors Be Allowed To Contract For The Home Court Advantage Through Forum Selection Clauses - Kkw Enterprises, Inc. V. Gloria Jean's Gourmet Coffees Franchising Corp., Nathan E. Ross Jan 2000

Federalism Versus The Greater Good ... Should Powerful Franchisors Be Allowed To Contract For The Home Court Advantage Through Forum Selection Clauses - Kkw Enterprises, Inc. V. Gloria Jean's Gourmet Coffees Franchising Corp., Nathan E. Ross

Journal of Dispute Resolution

When Congress condified the Federal Arbitration Act (F.A.A.), it sought to make arbitration a viable alternative to tradition litigation. Since the enactment of the FAA, the United States Supreme Court has addressed and answered numerous issues regarding the functioning of the FAA. However, the Supreme Court has yet to determine whether the FAA preempts state laws that invalidate forum selection clauses contained in franchise agreements. In Gloria Jean's, the First Circuit Court of Appeals squarely faced this issue and held that the FAA preempts state laws that attempt to negate the terms contained in a forum selection provision of a …