Publication details

Arbitration Clause as Unfair Contract Term from the Perspective of Czech and EC Law

Authors

NOVÝ Zdeněk

Year of publication 2009
Type Article in Periodical
Magazine / Source Global Jurist
MU Faculty or unit

Faculty of Law

Citation
Web http://www.bepress.com/gj/vol9/iss4/art1
Field Law sciences
Keywords Arbitration; arbitration agreement; arbitration clause; consumer contracts
Description The conflict between EU consumer protection provided for by the Directive on unfair terms in consumer contracts and principles of arbitration came to a head in the ECJ Claro case. This case has shown that the arbitration clause may be an unfair contract term par excellence. I use Claro case as a point of departure for the considerations concerning unfairness of arbitration clause in contracts between businesses and consumers. Consequently, I draw a parallel between the Claro case and contractual practice in the Czech Republic where the arbitration clauses incorporated in standard form contracts between businesses and consumers are in many instances unfair. Their unfairness stems from the fact that arbitration clauses refer to arbitrators ad hoc who are unilaterally appointed and paid by businesses. This state of affairs in the Czech Republic is arguably at variance with the Directive on unfair contract terms as well as the ECJ case law.

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