Badgers Win Unconscionability Battle

Law clinic students at the University of Wisconsin have apparently won a legal battle over whether pre-dispute arbitration clauses in credit card contracts are unconscionable.  According to a release from the school, the students sued a credit card lender for making abusive telephone calls to collect debts.  The company responded by invoking the arbitration clause in its contract, which said that it was governed by Delaware law.

The students apparently convinced a Dane County circuit judge that the specification of Delaware law, which ostensibly deprived customers of the protections of Wisconsin consumer law, was unconscionable.

[Frank Snyder]