Vermont
How American Express v. Italian Colors Restaurant applies in Vermont: state-specific rules, key cases, and bar exam notes for Contracts.
Vermont follows the principle that contractual arbitration clauses are generally enforceable unless they are fundamentally unconscionable. The court takes into account the balance of negotiating power while also considering considerations of public policy.
In Vermont, an arbitration clause included in a consumer contract is enforceable as long as it is not deemed unconscionable and both parties entered into the agreement voluntarily.
The Vermont Supreme Court enforced an arbitration clause, affirming that such provisions are generally favored to minimize litigation costs.
The court ruled that a waiver of jury trial in the arbitration clause was enforceable, reflecting similar reasoning found in the American Express case.
The court upheld an arbitration agreement despite challenges to its fairness, aligning with the principles of non-interference established in American Express.
Vermont's approach parallels federal law, particularly the Federal Arbitration Act, which emphasizes the enforceability of arbitration agreements. However, Vermont courts may be somewhat more willing to scrutinize such agreements for unconscionability, reflecting a concern for consumer protection.
Candidates should be familiar with Vermont's approach to arbitration agreements, which reinforces the enforceability principle while considering fairness and potential power imbalances.