Question

A standard arbitration clause can be substantively unconscionable if the fees and costs are so excessive as to deny the innocent party the ability to resolve his claim. True False

Answer 1

Answer: False

Explanation: An arbitration clause is said to be Substantively unconscionable if the actual terms of the contract clearly depicts extreme unfairness toward one of the two contracting parties leaving the party with no reasonable benefit usually due to one or more of the following reasons;

Extreme contrast in bargaining poker or capability.

Evidence depicting that the other party was forced or coerced into the contract.

Inclusion of a foreign or hidden language in the contract intended to conceal certain details.

Evidence of illegal conduct.

However, A standard arbitration clause cannot be substantively unconscionable if the fees and costs are so excessive as to deny the innocent party the ability to resolve his claim.

Answer 2

False

Step-by-step explanation:

This is a contract which sometimes is referred to as an adhesion or boilerplate contract. It is a contract between two parties, where the terms and conditions of the contract are set by one of the parties, and the other party has little or no ability to negotiate more favorable terms and is thus placed in a "take it or leave it" position.

A standard form contract drafted by one party which is usually a business with stronger bargaining power and signed by the weaker party which in most cases is a consumer in need of goods or services, who must adhere to the contract and therefore does not have the power to negotiate or modify the terms of the contract. Also known as a take-it-or-leave-it contract.

The statement is false for such a clause.