Friday, December 21, 2007

Virginia law decision from Third Circuit on unconscionability of arbitration clause in consumer contract

In Gay v. CreditInform, a panel of the U.S. Court of Appeals for the Third Circuit held that the arbitration clause in a contract with a consumer was not unconscionable, applying Virginia law because of a choice-of-law provision in the contract. The Court relied in large measure on the Virginia Supreme Court's analysis of unconscionability in Management Enterprises, Inc. v. Thorncroft Co., Inc., 243 Va. 469, 416 S.E.2d 229 (1992). Here is an article on the decision, from

I am unsurprised at the conclusion that waiver of the right to file a class action is not unconscionable under Virginia law, as there generally is no such thing as a class action under Virginia law.

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