Adhesion Contract

A standardized, take-it-or-leave-it contract that one party offers to another. That is, one party has no option to change any section of the contract through negotiation with the other party. Adhesion contracts are especially useful to companies that engage in a high volume of transactions because they give them greater predictability. However, it is not uncommon for one party to offer an adhesion contract that hides excessive penalties or other payments in the fine print; in such situations, courts often refuse to enforce the contract.

adhesion contract

A contract that is so grossly one-sided that courts will not enforce it, or will not enforce specific terms deemed to be unconscionable or oppressively unfair, especially if the consumer has no other choices in the marketplace.

References in periodicals archive

by imposing mandatory arbitration in adhesion contracts.

The future of class-action waivers in consumer contract arbitration agreements after DIRECTV, Inc. v. Imburgia

regard to this harm, compelling arbitration through an adhesion contract

Because arbitration can be beneficial, it should never have to be mandatory: making a case against compelled arbitration based upon pre-dispute agreements to arbitrate in consumer and employee adhesion contracts

In the arbitration process when adhesion contract drafters have

Nothing for something? Denying legal assistance to those compelled to participate in ADR proceedings

(62) The term "fairness"--as used in the new adhesion contract analysis--means marked by impartiality and honesty.

Adhesion contracts don't stick in Michigan: why Rory got it right

sort have all the characteristics of the classic adhesion contract. (62)

ADR and the cost of compulsion

as to whether these adhesion contracts rise to the level of

Resolving disputes over excess frozen embryos through the confines of property and contract law

1972) (mandatory inclusion of arbitration clause as part of employment agreement between New York Stock Exchange member firm and employee not adhesion contract because employee was free to seek employment elsewhere if he objected to clause).

Enforcing arbitration agreements between employers and employees

(103) Because the courts use the Supreme Court decisions dealing with COL clauses and forum-selection clauses interchangeably, courts have used Carnival Cruise Lines, which involved enforcement of a forum-selection clause, as support for decisions to enforce COL clauses in maritime contracts that are concededly adhesion contracts. However, often courts have used the strong presumption of enforceability to protect the non-drafting party to a maritime adhesion contract.

Great Lakes Reinsurance V. Durham Auctions: why the lack of clearly defined fifth circuit "maritime choice of law principles" has the potential to hurt insureds

Ehrenzweig, Adhesion Contracts in the Conflict of Laws, 53 Colum.

Special "K"s: contracts of adhesion and their unconscionable arbitration clauses

(2) Consent for drug testing often comes from the pain contract (3)--agreements that have been called "unconscionable adhesion contracts" and may be unenforceable?

Urine drug testing: An unproven risk management tool?

Randy Barnett's theory of form contracting (34)--a relatively adhesion-friendly theory, to boot--highlights a few special limitations of adhesion contracts. First, an actual manifestation of assent is important to trigger enforceability.

The perpetual anxiety of living constitutionalism