(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.
waivers in adhesion contracts
, in light of the CFPB rules limiting class
agreements in consumer and employee adhesion contracts
, they undermine
provisions of consumer adhesion contracts
that bar class action
So far it has been assumed that the powerful adhesion contract
Finally--and most pertinent to the potential for living constitutionalists to draw from the concept of the contract of adhesion to explicate their interpretive principles--contracts of adhesion can be limited to consumers' "reasonable expectations." (39) Terms are not to be interpreted to "exceed some bound of reasonableness." (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.
The complaint also alleges that Rent-A-Center uses a high-pressure sales scheme, which includes getting consumers to sign "applications" as soon as they walk into the store, to coerce them "into entering into adhesion contracts
that do not inform consumers of the real economic cost of the transactions." The weekly or monthly rental prices customers pay, "in actual economic substance, constitute the charging of an annual interest rate far in excess of that permitted by law." At press time, the case awaited a ruling to clarify the class certification order.
can have a dramatic impact on the relationship
special principles applied to adhesion contracts
, and the idea that such
Moreover, the comments to section 211 of the Restatement provide compelling policy arguments for the necessity of adhesion contracts
. Utility of standardization.
Although adhesion contracts
are vulnerable to legal challenges, they are not routinely unenforceable.
As the legislative history shows, the primary purposes behind [section] 107(e) were the prevention of adhesion contracts
and the protection of parties from nondisclosure.(94) Because adhesion contracts
are addressed by common law it is unnecessary to provide for them in CERCLA [section] 107(e).
(103) Because the courts use the Supreme Court decisions dealing with COL clauses and forum-selection clauses interchangeably, courts have used Carnival Cruise Lines, which involved enforcement of a forum-selection clause, as support for decisions to enforce COL clauses in maritime contracts that are concededly adhesion contracts
. However, often courts have used the strong presumption of enforceability to protect the non-drafting party to a maritime adhesion contract