U.S. Supreme: Arbitrator Must Decide Agreement's Enforceability

An arbitrator must decide whether a former Rent-A-Center employee's arbitration agreement was unconscionable because the employee challenged the agreement as a whole, according to a split decision from the U.S. Supreme Court. The nation's high court ruled that a federal district court could have decided whether an arbitration agreement was unenforceable if the plaintiff employee had specifically challenged the delegation clause of the arbitration agreement, as the delegation clause gives the arbitrator the ability to decide whether the agreement is enforceable. However, former Rent-A-C...