Courts Must Rule On Arbitration Provisions: 9th Circ.

Law360, New York (September 9, 2009, 5:39 PM EDT) -- In a race bias suit brought by a former Rent-A-Center West Inc. employee, a federal appeals court has ruled that district courts, and not arbitrators themselves, have the responsibility to determine when arbitration agreements are “unconscionable” when those arbitration agreements are challenged.

In a 2-1 ruling, the U.S. Court of Appeals for the Ninth Circuit on Wednesday ordered a lower court to review whether the arbitration agreement that Antonio Jackson signed with Rent-A-Center West is in fact unconscionable.

A district court in Nevada had earlier ruled...
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