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Article: Restrictions on forum-selection clauses in franchise agreements and the federal arbitration act: Is state law preempted?
- Article from:
- Vanderbilt Law Review
- Article date:
- April 1, 1998
- Author:
CopyrightCopyright Vanderbilt Law Review Apr 1998. Provided by ProQuest LLC. (Hide copyright information)
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I. INTRODUCTION The use of forum-selection clauses in contracts continues to increase. Emboldened by the Supreme Court's endorsement of forumselection clauses,1 large companies now frequently use these clauses in a variety of contracts. Contracting parties use these clauses in part to ensure that the parties can resolve any dispute in a convenient forum. Often, however, a party inserts a forum-selection clause to limit liability by increasing the barriers to litigation or arbitration.2 Typically, the party inserting the forum-selection clause has superior bargaining power and inserts into the contract a clause designating a forum remote to the other party, where any dispute over the ...