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Economics

Unconscionability in Consumer Contract Enforcement

Quick fact

In 1995, the Supreme Court of Alabama struck down an arbitration clause in a consumer contract as unconscionable, despite the general policy favoring arbitration, because the clause was buried in a take-it-or-leave-it agreement and imposed severe disadvantage on the consumer (see 'Searcy v. M-I Drilling Fluids, Inc.').

Why this is interesting

Have you ever signed a contract without reading the fine print, only to discover later that you waived rights you never knew you had? What if the law said that such a clause was unenforceable because it was simply too unfair?