Who Decides Whether an Arbitration Agreement Is Unconscionable?
By Manjit S. Gill The Supreme Court is due to hear oral argument on April 26, 2010, in Jackson v. Rent-a-Center West, Inc.[1] Jackson addresses the question of who determines whether an arbitration agreement is unconscionable when the agreement itself clearly charges arbitrators with the responsibility to resolve that question. The plaintiff, Jackson, was an employee of defendant Rent-A-Center West, Inc. Jackson sued his employer in federal court, alleging racial discrimination. His employer moved to dismiss and compel arbitration, relying on the arbitration agreement signed by plaintiff when he first started working for defendant. The agreement specifically listed claims for discrimination in the categories of matters subject to arbitration. The agreement further provided as follows: The Arbitrator, and not any federal, state, or local court or agency, shall have exclusive authority to resolve any dispute relating to the interpretation, applicability, enforceability or formation of th
