SAN FRANCISCO — Ruling in a closely watched case, the California Supreme Court made clear Monday that consumers trying to escape arbitration agreements must do more than show the contract favored the other side.
A six-justice majority reversed the Second District Court of Appeal, which ruled in 2011 that an arbitration agreement in a sales contract for a used Mercedes-Benz could not be enforced because it favored the car dealer. However, the court stopped short of adopting a new, possibly more rigorous, standard for proving unconscionability.
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