Court Refuses To Enforce “Unconscionable” Arbitration Provision

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Although California law looks favorably on arbitration agreements, the California Court of Appeal's recent decision in Lhotka v. Geographic Expeditions, Inc. illustrates that courts will not hesitate to set such agreements aside if they perceive that the agreements are unfair. In Lhotka, the appellate court held that the agreement at issue was unconscionable because it was presented on a "take it or leave it" basis and because it contained provisions that unfairly benefited one side.

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