"Adhesion Contract" is Standardized Contract

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David A. Szwak
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Joined: Thu Jul 13, 2006 11:19 pm

"Adhesion Contract" is Standardized Contract

Post by David A. Szwak »

Generally, "adhesion contract" is standardized contract, usually pre- printed, which is prepared by party of superior bargaining power for adherence or rejection of weaker party. Stadtlander v. Ryan's Family Steakhouses, Inc., 794 So.2d 881, 17 IER Cases 831, 34,384 (La.App. 2 Cir. 4/4/01). Arbitration agreement is a kind of forum selection clause; by agreeing to arbitrate particular cause of action, parties do not forgo any substantive rights, but only agree to submit to jurisdiction of arbitral, rather than judicial, forum. Id.; Gilmer v. Interstate/Johnson Lane Corp., 500 U.S. 20, 31-32, 111 S.Ct. 1647, 1654-1655, 114 L.Ed.2d 26 (1991); Mitsubishi Motors Corp. v. Soler Chrysler Plymouth, Inc., 473 U.S. 614, 628, 105 S.Ct. 3346, 3354-3355, 87 L.Ed.2d 444 (1985). Right to judicial proceeding is waivable by contract so long as rights that proceeding were designed to protect can be vindicated by other means. Id.
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