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Is Binding Arbitration a non-enforceable Contract of Adhesion in CA?

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trashtalk

Junior Member
I bought a computer online from Dell. The contract, which is a take it or leave it proposition for buyers, requires binding arbitration which conveniently for Dell would cost me more than the amount in dispute. The text is pasted below if it matters.

Is this enforceable in California or I can I instead take a dispute to small claims court in the county where the PC was delivered?


Binding Arbitration. ANY CLAIM, DISPUTE, OR CONTROVERSY (WHETHER IN CONTRACT, TORT, OR OTHERWISE, WHETHER PREEXISTING, PRESENT OR FUTURE, AND INCLUDING STATUTORY, COMMON LAW, INTENTIONAL TORT AND EQUITABLE CLAIMS) BETWEEN CUSTOMER AND DELL, its agents, employees, principals, successors, assigns, affiliates (collectively for purposes of this paragraph, "Dell") arising from or relating to this Agreement, its interpretation, or the breach, termination or validity thereof, the relationships which result from this Agreement (including, to the full extent permitted by applicable law, relationships with third parties who are not signatories to this Agreement), Dell's advertising, or any related purchase SHALL BE RESOLVED EXCLUSIVELY AND FINALLY BY BINDING ARBITRATION ADMINISTERED BY THE NATIONAL ARBITRATION FORUM (NAF) under its Code of Procedure then in effect (available via the Internet at http://www.arb-forum.com, or via telephone at 1-800-474-2371). The arbitration will be limited solely to the dispute or controversy between customer and Dell. NEITHER CUSTOMER NOR DELL SHALL BE ENTITLED TO JOIN OR CONSOLIDATE CLAIMS BY OR AGAINST OTHER CUSTOMERS, OR ARBITRATE ANY CLAIM AS A REPRESENTATIVE OR CLASS ACTION OR IN A PRIVATE ATTORNEY GENERAL CAPACITY.
 
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I AM ALWAYS LIABLE

Senior Member
trashtalk said:
What is the name of your state?What is the name of your state? CA

I bought a computer online from Dell. The contract, which is a take it or leave it proposition for buyers, requires binding arbitration. The text is pasted below if it matters.

Is this enforceable in California or I can I take a dispute to small claims court in the county where the PC was delivered?


Binding Arbitration. ANY CLAIM, DISPUTE, OR CONTROVERSY (WHETHER IN CONTRACT, TORT, OR OTHERWISE, WHETHER PREEXISTING, PRESENT OR FUTURE, AND INCLUDING STATUTORY, COMMON LAW, INTENTIONAL TORT AND EQUITABLE CLAIMS) BETWEEN CUSTOMER AND DELL, its agents, employees, principals, successors, assigns, affiliates (collectively for purposes of this paragraph, "Dell") arising from or relating to this Agreement, its interpretation, or the breach, termination or validity thereof, the relationships which result from this Agreement (including, to the full extent permitted by applicable law, relationships with third parties who are not signatories to this Agreement), Dell's advertising, or any related purchase SHALL BE RESOLVED EXCLUSIVELY AND FINALLY BY BINDING ARBITRATION ADMINISTERED BY THE NATIONAL ARBITRATION FORUM (NAF) under its Code of Procedure then in effect (available via the Internet at http://www.arb-forum.com, or via telephone at 1-800-474-2371). The arbitration will be limited solely to the dispute or controversy between customer and Dell. NEITHER CUSTOMER NOR DELL SHALL BE ENTITLED TO JOIN OR CONSOLIDATE CLAIMS BY OR AGAINST OTHER CUSTOMERS, OR ARBITRATE ANY CLAIM AS A REPRESENTATIVE OR CLASS ACTION OR IN A PRIVATE ATTORNEY GENERAL CAPACITY.

My response:

The mere fact an adhesion contract is involved does not per se render the arbitration clauses unenforceable. Rationale: Such contracts are "an inevitable fact of life for all citizens--businessman and consumer alike." [Graham v. Scissor-Tail, Inc. (1981) 28 Cal.3d 807, 817, 171 Cal.Rptr. 604, 610; Armendariz v. Foundation Health Psychcare Services, Inc. (2000) 24 Cal.4th 83, 113, 99 Cal.Rptr.2d 745, 766-767]

The basic agreement to arbitrate may still be upheld if the unconscionable provision can be severed from the agreement. [Graham v. Scissor-Tail, Inc., supra, 28 Cal.3d at 819-820, 171 Cal.Rptr. at 612]

IAAL
 

trashtalk

Junior Member
Clarification

I guess what I am really asking is simply: Is the small claims court judge likely to hear my case or dismiss it because I didn't pay for arbitration?

And would Dell be able to sue me successfully for skipping arbitration?
 
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