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Circuit City Arbitration Pact Invalid in State

July 23, 2003|From Bloomberg News

Circuit City Stores Inc. lost another bid to require a California worker to resolve a dispute outside of court when a federal appeals court ruled the retailer's arbitration contract wasn't enforceable in the state.

The U.S. 9th Circuit Court of Appeals in San Francisco, for the second time this year, ruled that provisions of Circuit City's contract were "unconscionable" under California law.

The court returned Paul Mantor's age-discrimination claims against Circuit City to a lower court for trial.

A Circuit City spokesman said the company was considering whether to appeal.

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