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Official Blog of the AALS Section on Contracts

Are Fridgewrap Arbitration Clauses Enforceable

November 19, 2021

Contracts Prof Alan Hyde shared this image of the lovely surprise his student received upon opening the door of a new refrigerator.

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As I read the draft Restatement of Consumer Contract Law § 2(b)(3), such terms would only become a part of the contract if “after the standard contract term is made available for review, the consumer has a reasonable opportunity to terminate the transaction without unreasonable cost, loss of value, or personal burden, and does not exercise that power.”  Does that mean that the arbitration clause is not part of the contract if the student had to pay a non-refundable delivery/installation clause and could not return the fridge without cost?