California Court finds Arbitration Clause Procedurally Unconscionable

Plaintiff purchase a used vehicle and financed it through American Honda Finance Corporation. In the back of the financing agreement the contract contained an arbitration clause. The California Court of Appeal for the First District held: 'Because the arbitration agreement was imposed on [Plaintiff] without the opportunity for negotiation, and was therefore adhesive, we agree the transaction was procedurally unconscionable.'
Robin Mashal
Los Angeles, California
Commercial Litigation
(310) 286-2000

I am a litigation lawyer, licensed to practice law in the State of California. You can reach me by phone at (310) 286-2000.