The following article is reprinted from Basis Points® , Vol. 2, Issue 7, Copyright © 2003, with the permission of CounselorLibrary.com, LLC. All Rights Reserved. Further reproduction is prohibited without permission.

For several years, we have cautioned against trying to use an arbitration agreement that is anything less than completely friendly to consumers. The theory is that courts will seize upon anti-consumer provisions in arbitration agreements as an excuse not to enforce them. One such provision we have been particularly concerned about is one that takes away the consumer's right to obtain exemplary or punitive damages in arbitration. Well, it's a good thing that whoever drafted the arbitration agreement involved in this case didn't listen to us.