St. John's Law Review

Consideration of “Contracting Culture” in Enforcing Arbitration Provisions

By: Amy J. Schmitz

The growth of consumer arbitration in the United States raises important questions regarding the fairness of form arbitration provisions in differing contexts and relationships.  This Article therefore plants the seed for a larger exploration of the importance of “contracting culture” in creation and enforcement of these provisions.  Furthermore, it proposes a continuum ranging from “intra to extra communal” contracting cultures as a means for balancing the fairness and efficiency of form provisions and uses commercial construction and consumer contexts as examples of cultures that often lean toward opposite ends of the continuum.  In this way, the Article questions current formalistic enforcement of form arbitration provisions and invites consideration of relations, understandings, and values when applying tools such as unconscionability to police the fairness of these provisions.  Consideration of contracting culture opens awareness of relational contexts and reveals that economic and resource imbalances should not drive courts’ application of contract tools.