waivers in adhesion contracts, in light of the CFPB rules limiting class
by imposing mandatory arbitration in adhesion contracts.
An adhesion contract is a type of standard form contract drafted by
section, an adhesion contract is one imposed by a party with greater
1) There are several elements of an adhesion contract
that enhanced adhesion contract
drafting power is likely to lead to
Moreover, the comments to section 211 of the Restatement provide compelling policy arguments for the necessity of adhesion contracts
Generally, courts will refuse to enforce an adhesion contract
only when it does not fall within the reasonable expectations of the weaker party or is unconscionable - that is, so unduly oppressive that the contract's enforcement would violate public policy.
In any event, the factors considered by courts in determining whether an arbitration agreement is an adhesion contract
include: the experience and competence of the contracting employee; the extent to which the employee negotiated other terms in the contract; whether the contract provision falls within the reasonable expectations of the employee; whether the contract designates an arbitrator who, by reason of status or identity, is presumptively biased; and the clarity of the agreement.
Shute, the Supreme Court found that the Ninth Circuit erred in refusing to enforce a forum-selection clause included in a maritime adhesion contract
, specifically, a cruise passenger ticket provided to the plaintiff.
The most widely recognized example of an adhesion contract
is an insurance policy.
109) Therefore, it is likely the FAA will apply to most consumer adhesion contracts
in which the product or service has travelled through, or will have a substantial effect on, interstate trade.
provisions of consumer adhesion contracts
that bar class action
Randy Barnett's theory of form contracting (34)--a relatively adhesion-friendly theory, to boot--highlights a few special limitations of adhesion contracts
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.