News Notes: Circuit City Arbitration Agreement Struck Down Again

The Ninth Circuit Court of Appeals, which covers California, has issued another in a string of rulings invalidating mandatory arbitration agreements used by electronics retailer Circuit City. In the latest case, Circuit City employee Paul Mantor claimed the company indicated to employees that they risked their future with the retailer if they chose not to participate in the company’s arbitration program. According to the court, the agreement was unconscionable because Mantor had no real opportunity to opt out of it. The court also found certain agreement terms similarly unfair, including requiring an employee to pay a $75 arbitration claim filing fee.