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<blockquote data-quote="dmac1" data-source="post: 3539840" data-attributes="member: 60252"><p>Don't know about the ISP contract, but the old contract limited any award to only lost profit if you won. So if fedex fired you without valid reason, and you paid the thousands of dollars to set up an arbitration, and you won, you would only be entitled to lost profit from when you were fired until your contract would have expired. You would need to submit tax returns to prove you were profitable. If you 'profitted' $4k a month and had 6 months left on your contract, you could have potentially won $24k in arbitration, but you would need to pay your own attorney costs, even if you won. I know that I tried to limit 'profits' by taking every allowable deduction, and showed a few years of losses, mostly due to taking a mileage deduction on my high mile routes. The mileage deduction was a lot higher than actual costs with that many miles.</p><p></p><p>You would NOT ever recoup whatever you paid for the 'business' or what you may still owe on vehicles or the purchase price. The cost of arbitration is a minimum of close to $5000 paid up front, which you would get back if you win.</p><p></p><p>The old arbitration clause was ruled unconscionable in at least two cases, but fedex didn't immediately change the contract. And 'unconscionable' laws may vary by state. The supreme court ruling allowing forced arbitration wouldn't apply to an unconscionable arbitration clause.</p><p></p><p> The 'take it or leave it' arbitration clause, the cost of arbitration, the huge discrepancy in power, the fact that the entire contract(back then-2006 era) was non-negotiable, and the fact that your award was limited while fedex had no limitation on what they could sue you for were issue in finding the arbitration clause was unconscionable. The cost of getting a court to rule 'unconscionability' on whatever the new arbitration clause would be likely upwards of $50k for the first case. Second cases would save about half using a prior ruling.</p></blockquote><p></p>
[QUOTE="dmac1, post: 3539840, member: 60252"] Don't know about the ISP contract, but the old contract limited any award to only lost profit if you won. So if fedex fired you without valid reason, and you paid the thousands of dollars to set up an arbitration, and you won, you would only be entitled to lost profit from when you were fired until your contract would have expired. You would need to submit tax returns to prove you were profitable. If you 'profitted' $4k a month and had 6 months left on your contract, you could have potentially won $24k in arbitration, but you would need to pay your own attorney costs, even if you won. I know that I tried to limit 'profits' by taking every allowable deduction, and showed a few years of losses, mostly due to taking a mileage deduction on my high mile routes. The mileage deduction was a lot higher than actual costs with that many miles. You would NOT ever recoup whatever you paid for the 'business' or what you may still owe on vehicles or the purchase price. The cost of arbitration is a minimum of close to $5000 paid up front, which you would get back if you win. The old arbitration clause was ruled unconscionable in at least two cases, but fedex didn't immediately change the contract. And 'unconscionable' laws may vary by state. The supreme court ruling allowing forced arbitration wouldn't apply to an unconscionable arbitration clause. The 'take it or leave it' arbitration clause, the cost of arbitration, the huge discrepancy in power, the fact that the entire contract(back then-2006 era) was non-negotiable, and the fact that your award was limited while fedex had no limitation on what they could sue you for were issue in finding the arbitration clause was unconscionable. The cost of getting a court to rule 'unconscionability' on whatever the new arbitration clause would be likely upwards of $50k for the first case. Second cases would save about half using a prior ruling. [/QUOTE]
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