Alternative Dispute Resolution
Jan. 10, 2007
Freedom for Franchisees
FOCUS COLUMN - By Ivan Rothman - A recent 9th Circuit decision questions mandatory venue clauses in arbitration and consumer agreements.
By Ivan Rothman
In Nagrampa v. MailCoups, 469 F.3d 1257 (9th Cir. 2006), the 9th Circuit ruled, en banc, that an arbitration provision in a franchise agreement was unconscionable and thus invalid and unenforceable. The decision causes particular concern to franchisors, but its implications extend to any form of commercial contract by which an entity conducting business na...
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