Arbitration Provision Not Invalid and Unconscionable, N.Y. Federal Judge Rules

NEW YORK — A New York federal judge has compelled arbitration of a contract dispute, ruling that the contract’s arbitration provision is not invalid and unconscionable because the parties’ actions show that they clearly intended to be bound by the provision.

In a Jan. 16 order, Judge Ronnie Abrams of the U.S. District Court for the Southern District of New York further held that the parties’ dispute falls within the scope of the arbitration provision.

Nomorerack.com (NMR) is an online retailer that offers products to consumers at a discount. Under a supplier agreement with Beautyko LLC, NMR was to …