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American Bar Association - Defending Liberty, Pursuing Justice


Vol. 15, No. 4

Arbitration & Mediation



Consensual Arbitration

Consensual assumes that both parties are aware that they are agreeing to it at the time they contract. Many adhesion contracts, e.g., credit card agreements, loan documentation, employment handbooks, now include mandatory arbitration clauses that the consumer or employee is unaware of at the time and there is no general rule requiring disclosure of this term. Nonetheless, the courts have nearly uniformly enforced the arbitration clause.

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