New Hampshire
How American Express Co. v. Italian Colors Restaurant applies in New Hampshire: state-specific rules, key cases, and bar exam notes for Contracts.
New Hampshire courts uphold arbitration clauses as long as they are clear and unambiguous, reflecting a general preference for enforcing contractual agreements made by commercial entities. This mirrors the principle established in American Express Co. v. Italian Colors Restaurant, where arbitration clauses were enforced despite the perceived imbalance of bargaining power.
In New Hampshire, arbitration agreements are valid unless they are unconscionable or violate public policy, aligning with the federal standard set by the Federal Arbitration Act (FAA).
The New Hampshire Supreme Court upheld the enforceability of an arbitration clause, emphasizing parties' intent to resolve disputes outside of court.
The court ruled that clear arbitration clauses are to be enforced as drafted, given the parties had equal representation.
A contract requiring arbitration was upheld, reinforcing the precedent that parties must honor their agreement unless significant inequities are present.
New Hampshire's approach aligns closely with federal standards established under the FAA, which emphasizes strong enforcement of arbitration agreements. However, New Hampshire may also consider fairness and equity in unique cases, allowing slightly more scrutiny than federal courts.
Understanding the application of arbitration clauses, specifically how New Hampshire courts interpret agreements in light of federal law, is critical for the bar exam.