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<blockquote data-quote="dmac1" data-source="post: 2035228" data-attributes="member: 60252"><p>The arbitration clause was thrown out in at least two county courts that I am aware of due to it being unconscionable. I believe that if those courts were asked to throw out the whole contract for the same reason, they would have. That clause being thrown out allowed court cases for damages to be pursued without arbitration. The rest of the contract was just as bad, but was almost impossible to challenge by any single contractor due to expense of trying it.</p><p></p><p>Fedex never challenged those rulings because in federal court because if it had gone there and they lost, it would have set a precedent. In county court, the decision only applied in those counties. There was one award of over $6 million that was subsequently challenged by fedex, and I believe settled out of court afterward for a smaller amount.</p><p></p><p>I don't know if they have since changed the arbitration clause for the new system.</p></blockquote><p></p>
[QUOTE="dmac1, post: 2035228, member: 60252"] The arbitration clause was thrown out in at least two county courts that I am aware of due to it being unconscionable. I believe that if those courts were asked to throw out the whole contract for the same reason, they would have. That clause being thrown out allowed court cases for damages to be pursued without arbitration. The rest of the contract was just as bad, but was almost impossible to challenge by any single contractor due to expense of trying it. Fedex never challenged those rulings because in federal court because if it had gone there and they lost, it would have set a precedent. In county court, the decision only applied in those counties. There was one award of over $6 million that was subsequently challenged by fedex, and I believe settled out of court afterward for a smaller amount. I don't know if they have since changed the arbitration clause for the new system. [/QUOTE]
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