Arbitration proceedings under scrutiny

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Required arbitration proceedings to resolve disputes have met with some judicial opposition if it becomes unconscionable. For example, a federal appeals court recently indicated that state courts may declare arbitration clauses unconscionable where individual claims may yield minor sums. Although most arbitration clauses are upheld by courts, there does seem to be a trend away from them in certain circumstances. Certainly, where there is a possibility of a class action suit, such a suit may not be barred where the individual suit could be so minor as to operated unfairly against the claimant.

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