STORY FROM: Reinsurance & Arbitration

Arbitration Clause in Sales Rep Contract Not Unconscionable, N.J. Federal Judge Rules

NEWARK, N.J. — An arbitration clause in a sales representative agreement is not procedurally unconscionable and does not constitute contracts of adhesion because it was not presented on a “take-it-or-leave-it” basis, a New Jersey federal judge has ruled in sending the parties’ dispute to arbitration.

On Feb. 7, Judge Stanley R. Chesler of the U.S. District Court for the District of New Jersey further held that the clause is not substantively unconscionable because the arbitration costs would not be “excessively burdensome” for the plaintiff.

Acrow Corporation of America is a New Jersey manufacturer of prefabricated steel bridges. Terra Finance LLC ...

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