Discuss contract containing an arbitration clause


Problem: Harold rents a car from Hertz Car Rental in Texas for one week, pursuant to a contract containing an arbitration clause. Harold drives the car to Arizona and while in Arizona the tire on the car blows out. The tow truck driver tells Harold," No wonder it exploded there's no tread left on this tire." Harold sures Hertz. In its answer to the complaint, Hertz asks the court to enforce the arbitration clause. Harold argues that the arbitration clause should not apply because the clause is unconscionable. The case is assigned to Judge Jones, who reviews the pleading and immediately orders the parties to arbitrate. Assuming that the Federal Arbitration Act applies. is this appropriate? Why or why not?

 

 

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