Dracca Inc.
Dracca: Problems with the arbitration clause
Despite Dracca's claims that the presence of an arbitration clause on page 5 of its 16-page contract with consumers makes all lawsuits null and void, recent case law suggests there is considerable room for dispute regarding this statement for its Spanish-speaking consumers and also all consumers that purchased the offending product. For example in a recent Florida Supreme Court Roberto Basulto, et al. v. Hialeah Automotive, etc., et al., the court found the arbitration clauses "contained in various agreements signed by the Spanish-speaking petitioners relating to their purchase of a Dodge Caravan from a car dealership were unenforceable. The Florida Supreme Court upheld the trial court's ruling that the arbitration clauses could not be enforced because they were conflicting and unconscionable" particularly given the low level of English literacy of the consumers (Oppenheimer 2014). Arbitration clauses must be consistent, contain all essential terms and above all be fair, the court ruled. The Supreme Court of New Jersey also "refused to enforce a lawyer-client arbitration provision because it failed to include sufficiently detailed warnings to the client" in Atalese v. U.S. Legal Services Group, L.P (Ciolino 2014).
The agreement constructed by Dracca met none of the above-cited standards in either of these states, suggesting that case law is trending towards protecting consumer rights against companies that attempt to use complex legal language...
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