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Pros And Cons Of Unconscionable Contract Law

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The Federal Arbitration Act, or FAA, was passed in 1925 giving employers the right to use as a means of cutting the cost of litigating lawsuits in court. Historically, Arbitration Agreements were used commercially in big business. However, they have been enacted into the workplace. However, Arbitration Agreements are not binding under duress and when unconscionable. The unconscionability clauses are governed by Uniform Commercial Code › U.C.C. - ARTICLE 2 - SALES (2002) › PART 3. GENERAL OBLIGATION AND CONSTRUCTION OF CONTRACT › § 2-302. Unconscionable contract or Clause.§ 2-302. Unconscionable Contract or Clause. ARBITRATION AGREEMENT AND ACTS OF VIOLENCE
The definition of an unconscionable contract is an unbalanced, one-sided, favor …show more content…

"There can be no prospective waiver of an employee's rights under Title VII”. Also, the Supreme Court has held that the EEOC may even seek employee-specific damages on behalf of an injured employee and is not limited strictly to injunctive relief. Furthermore, Congress states that employees that are required to sign arbitration agreements are not prohibited from filing a discrimination charge with the EEOC. Because lawsuits under Title VII have an independent statutory right and statutory causes of action. Therefore, employment discrimination claims, cannot be waived by a collective-bargaining agreement; because “there can be no prospective waiver” of a statutory right to sue.
Furthermore, Arbitration Agreements cannot preclude the employee from filing a claim with the National Labor Relations Board, the Department of Labor, the Equal Employment Opportunity Commission, Workers’ Compensation or Unemployment Benefits. Finally, arbitration agreements do not void the employee right to seek legal counsel or request compensation for emotional distress and or punitive

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