The following is not meant to be legal advice.
In 2005, plaintiff in Konig v. U-Haul Company of
The Court of Appeal confirmed that arbitration agreements are generally favored under state and federal law, but they are not enforceable if they are unconscionable. Unconscionability has a procedural and a substantive element. For a contractual provision to be invalidated due to unconscionability, procedural and substantive unconscionability must be present.
Substantive unconscionability comes from the California Supreme Court’s decision in Discover Bank v. Superior Court, 36
Procedural unconscionability occurs from oppression arising from unequal bargaining power or from surprise created by buried terms in a complex printed form. Procedural unconscionability exists if there has been no meaningful opportunity to negotiate and no way to opt out of the agreement.
Comment Preview