It is interesting that the trend in New Jersey employment law is to enforce arbitration agreements in employment contracts, while at the same time finding them unenforceable in consumer and commercial contracts. However, the law is the same: whatever the area, arbitration agreements are interpreted and enforced – or not enforceable – under New Jersey contract law. It’s therefore worth looking at two recent opinions in these areas to see what can be learned.
The Knight Case: Consumer Contracts and Consumer Fraud
In the first, a published opinion in case of Knight v. Vivint Solar Developer, LLC, the Appellate Division of the Superior Court of New Jersey stuck down an arbitration agreement which the defendants tried to enforce in a consumer fraud lawsuit over the sale of solar panels. After Knight sued, Vivint filed a motion to dismiss her complaint and enforce an arbitration agreement which required the parties to arbitrate their disputes.