Is the arbitration clause enforceable? Why or why not?

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Is the arbitration clause enforceable? Why or why not?


Dorton, as a representative for The Carpet Mart, purchased carpets from Collins & Aikman that were supposedly manufactured of 100 percent Kodel polyester fiber but were, in fact, made of cheaper and inferior fibers. Dorton then brought suit for compensatory and punitive damages against Collins & Aikman for its fraud, deceit, and misrepresentation in the sale of the carpets. Collins & Aikman moved for a stay pending arbitration, claiming that Dorton was bound to an arbitration agreement printed on the reverse side of Collins & Aikman’s printed sales acknowledgment form. A provision printed on the face of the acknowledgment form stated that its acceptance was “subject to all of the terms and conditions on the face and reverse side thereof, including arbitration, all of which are accepted by buyer.” Is the arbitration clause enforceable? Why or why not?

Explanation & AnswerSolution by a verified expert


It is a case of deviant acceptance and the judgement goes in the favor of Individual C. The acknowledgement form by Individual C and Individual A does not make acceptance conditional for Individual D. So,after accepting,Individual A and Individual Care going to create a binding contract. Individual D has also not denied the arbitration clause specifically. So, unless the terms do not get any material alteration to the original oral offer, the arbitration agreement is going to be a part of the binding contract.

Sample Response

The judgement is going to be in favor of Individual C and Individual A. In this case, the acknowledgement form states the acceptance and creates a binding contract with Individual C and Individual A. In the arbitration agreement, the change can be altered if there are material changes.
So, here, unless it materially alters the terms of Individual D, the original oral offer of the arbitration agreement is a binding contract.

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