Originally from Journal of American Arbitration (JAA)

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I. INTRODUCTION 246

A. Arbitration in Consumer and Employment Contracts Supported by the United States Supreme Court

B. Plaintiffs Must Challenge the Arbitration Clause Through Common Law Contract Defenses or Subject Matter Inarbitrability 

C. The Backlash:  State and Federal District Courts’ Opinions Demonstrate that Traditionally Litigious Rights and Norms Are Appearing in Arbitral Proceedings 

II. OVERVIEW OF UNITED STATES SUPREME COURT DECISIONS 

A. The Federal Arbitration Act:  Created to Counter the Perceived Judicial Hostility Toward Enforcing Arbitration Clauses

B. The National Policy Favoring Arbitration 

C. Arbitration Clauses and Traditional Contract Law:  The Power of “Unless Otherwise Agreed” 

1. Courts Should Enforce an Arbitration Clause Under the FAA, Unless the Parties Intend to Have State Law Apply 

2. Courts Have the Jurisdiction to Decide Whether an Arbitration Clause Exists and If It Covers the Dispute, Unless the Arbitration Agreement Provides Otherwise

3. Traditional Contract Defenses Against the Validity of an Arbitration Clause 

D. Subject Matter Arbitrability:  Not Just Traditional Contract Issues Anymore 

1. Statutory Claims and International Commercial Arbitration 

2. Beyond the International Commercial Context:  Statutory Claims and Domestic Consumer and Employment Arbitration

III. APPLICATION IN THE FEDERAL COURTS:  THE LEMMINGS VERSUS THE MULES

A. Contract Law Challenges to Arbitration Clauses 

1. Adhesion Contracts Upheld 

2. Is the Arbitration Clause Unconscionable? 

B. Subject Matter Challenges to Arbitration Clauses:  Civil Rights and Title VII 

1. Employees Are Bound

2. Employees Are Not Bound 

IV. IMPLICATIONS OF UNITED STATES SUPREME COURT AND FEDERAL CIRCUIT COURT DECISIONS 

A. Appropriateness of an Arbitration Forum to Resolve Disputes 

1. Consumer Contracts 

2. Employment Contracts 

B. Litigious Conduct and Concepts in Arbitration Proceedings:  The State and Federal District Court Decisions 

C. What These Cases Could Mean 

V. CONCLUSION