140) Adhesion contracts and arbitration clauses are the alfalfa of contract law; they may be useful to the modern economy in limited amounts but are dangerous to the purposes of contract law when made a steady diet.
Ehrenzweig, Adhesion Contracts in the Conflict of Laws, 53 Colum.
by imposing mandatory arbitration in adhesion contracts.
between the use of arbitration clauses in adhesion contracts, and the
agreements in consumer and employee adhesion contracts, they undermine
agreements to arbitrate in consumer and employee adhesion contracts are
40) To be sure, usually when courts construe adhesion contracts
in light of "reasonable expectations," the relevant expectations are measured as of the time of formation.
This Note argues that the Rory principles should be applied in all jurisdictions, and that the concept of adhesion contracts should be eliminated in favor of a return to traditional contract principles that have been a part of American jurisprudence since the formation of the country.
59) By the time the Second Restatement of Contracts was published, adhesion contracts received their own section under the title "standardized agreements.
Contract drafters have used FAA-backed adhesion contracts to change
Adhesion contracts have also rewritten the legal reality of the
Both Article 2 of the UCC(40) and UCITA provide justifications for adhesion contracts similar to those proffered by the Restatement.
Nevertheless, it is generally accepted that courts may place upon adhesion contracts certain limitations, such as construction against the drafting party and the unenforceability of terms that are unconscionable or against public policy.
An adhesion contract
is a standardized contract, drafted and imposed by the party with superior bargaining power, which is presented to the other party without any opportunity to negotiate its terms.
The court then cited [section] 187 of the Restatement (Second) of Conflict of Laws as support for the assertion that American courts usually enforce COL clauses, even when they are drafted in adhesion contracts