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(Solved) Spotlight on Arbitration ClausesUnconscionable Contracts or Clauses.


Spotlight on Arbitration Clauses—Unconscionable Contracts or Clauses. Roberto Basulto and Raquel Gonzalez, who did not speak English, responded to an ad on Spanish-language television sponsored by Hialeah Automo-tive, LLC, which does business as Potamkin Dodge. Potam-kin’s staff understood that Basulto and Gonzalez did not speak or read English and conducted the entire transaction in Spanish. They explained the English-language contract, but did not explain an accompanying arbitration agreement. This agreement limited the amount of damages that the buy-ers could seek in court to less than $5,000, but did not limit Potamkin’s right to pursue greater damages. Basulto and Gonzalez bought a Dodge Caravan and signed the contract in blank—that is, leaving some terms to be filled in later. Potamkin later filled in a lower trade-in allowance than agreed and refused to change it. The buyers returned the van—having driven it a total of seven miles—and asked for a return of their trade-in vehicle, but it had been sold. The buyers filed a suit in a Florida state court against Potamkin. The dealer sought arbitration. Was the arbitration agreement unconscionable? Why or why not?

 


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