News Notes: Opt-Out Arbitration Clause Saves Lopsided Agreement

The federal Ninth Circuit Court of Appeals recently tossed out a mandatory arbitration agreement signed by a Circuit City employee because it was unduly lopsided in the employer’s favor (see CEA March 2002). But in another case involving identical arbitration provisions, the court has ruled that employee Mohammad Sharfuddin Ahmed was required to arbitrate his discrimination lawsuit against Circuit City.1 The difference between the two cases was that Circuit City gave Ahmed 30 days to opt out of the arbitration program, with no employment consequences. But Ahmed never mailed in the opt-out form.