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Arbitration Discussion Topic

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1. Jackson filed the lawsuit instead of going to arbitration because he claimed "that the Agreement to arbitrate is unconscionable under Nevada law and is unenforceable" (Reed, Pagnattaro, Cahoy, Shedd & Morehead, 2012, pg.140).

2. Rent-A-Center wants to dismiss the lawsuit, ultimately because they don't want to have to pay Mr. Jackson anything. But their reasoning is that "the issue of unconscionability and unenforceability are matters for the arbitrator, not the courts, to decide" (Reed, Pagnattaro, Cahoy, Shedd & Morehead, 2012, pg.140).

3. The Supreme Court used The Federal Arbitration Act, Section 4 to decide the proper roles of a judge and an arbitrator. Section 4 states that if either party decides they aren't going to comply with the Arbitration agreement, the other party has the right to petition the court "for an order directing that such arbitration proceed in the manner provided for in such an agreement" (Reed, Pagnattaro, Cahoy, Shedd & Morehead, 2012, pg.140). Jackson's lawsuit never specifically called out Section 2, which says "a written provision in...a contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of suck contract...shall be valid, irrevocable, and enforceable, save upon such grounds as exist a low or in equity for the revocation of any contract" (Reed, Pagnattaro, Cahoy, Shedd & Morehead, 2012, pg.140). Because Jackson never specifically challenged "the delegation provision", the court "must treat it as valid under Section 2, and must enforce it under Sections 3 and 4, leaving any challenge to the validity of the Agreement as a whole for the arbitrator" (Reed, Pagnattaro, Cahoy, Shedd & Morehead, 2012, pg.140).

4. The Supreme Court reversed the decision of the Ninth Circuit Court of Appeals, which "decided that the threshold question of…...

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