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Arbitration Clause Ruled Unconscionable Arbitration

Saturday, July 09, 2005 03:19 pm

 

An Ohio court has ruled that an arbitration clause in a home building contract was both procedurally and substantively unconscionable.

A husband and wife entered into a contract with Gatliff Building Co. for construction of a home in Wadsworth. The agreement contained the following arbitration clause.

"All claims and disputes relating to this contract shall be subject to arbitration at the option of either the buyer or the contractor in accordance with the Arbitration Rules of the American Arbitration Association for the construction industry...The buyer shall have no rights to seek or obtain arbitration until such time as the contractor has certified substantial compl [...]

 
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