LD 1218
pg. 25
Page 24 of 94 An Act To Enact the Revised Uniform Arbitration Act Page 26 of 94
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LR 468
Item 1

 
Lending Corp., 511 S.E.2d 854 (W. Va. 1998) (holding that an
arbitration clause in consumer loan transaction that contained
waiver of the consumer's rights to access to the courts, while
reserving practically all of the lender's right to a judicial
forum found unconscionable).

 
As a result of concerns over fairness in arbitration involving
those with unequal bargaining power, organizations and
individuals involved in employment, consumer, and health-care
arbitration have determined common standards for arbitration
in these fields. In 1995, a broad-based coalition representing
interests of employers, employees, arbitrators and arbitration
organizations agreed upon a Due Process Protocol for Mediation
and Arbitration of Statutory Disputes Arising Out of the
Employment Relationship; see also National Academy of
Arbitrators, Guidelines on Arbitration of Statutory Claims
under Employer-Promulgated Systems (May 21, 1997). In 1998, a
similar group representing the views of consumers, industry,
arbitrators, and arbitration organizations formed the National
Consumer Disputes Advisory Committee under the auspices of the
American Arbitration Association and adopted a Due Process
Protocol for Mediation and Arbitration of Consumer Disputes.
Also in 1998 the Commission on Health Care Dispute Resolution,
comprised of representatives from the American Arbitration
Association, the American Bar Association and the American
Medical Association endorsed a Due Process Protocol for
Mediation and Arbitration of Health Care Disputes. The purpose
of these protocols is to ensure both procedural and
substantive fairness in arbitrations involving employees,
consumers and patients. The arbitration of employment,
consumer and health-care disputes in accordance with these
standards will be a legitimate and meaningful alternative to
litigation. See, e.g., Cole v. Burns Int'l Sec. Serv., 105
F.3d 1465 (D.C. Cir. 1997) (referring specifically to the due
process protocol in the employment relationship in a case
involving the arbitration of an employee's rights under Title
VII).

 
The Drafting Committee determined to leave the issue of
adhesion contracts and unconscionability to developing law
because (1) the doctrine of unconscionability reflects so much
the substantive law of the States and not just arbitration,
(2) the case law, statutes, and arbitration standards are
rapidly changing, and (3) treating arbitration clauses
differently from other contract provisions would raise
significant preemption issues under the Federal Arbitration
Act. However, it should be pointed out that a primary purpose
of Section 4, which provides that some sections of the RUAA
are not waivable, is to address the problem of contracts of
adhesion in the statute while
taking into account the limitations caused by federal
preemption.


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