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Week 1 Case Questions

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Grantham University
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Week 1 Case Questions
Nino v. The Jewelry Exchange (Ch. 1, p 21)
1. What was the legal issue in this case? What did the Court of Appeals decide?
The legal issue in this case is whether the arbitration agreement was unacceptable or
unconscionable, and whether the unacceptable terms could be done away with without making
the entire agreement void. Another issue was whether the employer had waived the right to
compel arbitration by its move to litigate the case for 15 months. The Court of Appeals decided
that the agreement was unconscionable and the unacceptable terms could not be separated
entirely from the other parts of the agreement. Also, the court maintained that by waiting for
too long to invoke the agreement, the employer had waived the right to compel arbitration. The
plaintiff could therefore lawfully peruse the claims of discrimination against the employer in
court.
2. What does it mean for a contract to be “unconscionable”? “Procedurally
unconscionable”? “Substantively unconscionable”?
Contracts can be considered to be unconscionable when there is no meaningful choice for one
party, or when the term favor one party more than the other. A contract has to be proven to be
both procedurally and substantively unconscionable to conclude that it is unconscionable in its
entirety. A substantively unconscionable contract is when the contents of the contract are either
oppressive, one-sided, harsh and unfavorable to one side. Procedurally unconscionable
agreements refer to ‘contracts of adhesion’ which are drafted by parties with enormous
bargaining power and offered to the other party on a ‘take it or leave it’ basis with no room for
negotiation or alteration of the terms (Hatzis & Zervogianni, 2006).
3. What was the evidence that this agreement was procedurally unconscionable?
Substantively unconscionable?

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Course Title Student Name Institution Affiliation Date 1 Week 1 Case Questions Nino v. The Jewelry Exchange (Ch. 1, p 21) 1. What was the legal issue in this case? What did the Court of Appeals decide? The legal issue in this case is whether the arbitration agreement was unacceptable or unconscionable, and whether the unacceptable terms could be done away with without making the entire agreement void. Another issue was whether the employer had waived the right to compel arbitration by its move to litigate the case for 15 months. The Court of Appeals decided that the agreement was unconscionable and the unacceptable terms could not be separated entirely from the other parts of the agreement. Also, the court maintained that by waiting for too long to invoke the agreement, the employer had waived the right to compel arbitration. The plaintiff could therefore lawfully peruse the claims of discrimination against the employer in court. 2. What does it mean for a contract to be “unconscionable”? “Procedurally unconscionable”? “Substantively unconscionable”? Contracts can be considered to be unconscionable when there is no meaningful choice for one party, or when the term favor one party more than the other. A contract has to be proven to be both procedurally and substantively unconscionable to conclude that it is unconscionable in its entirety. A substantively unconscionable contract is when the contents of the contract are either oppressive, one-sided, harsh and unfav ...
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