In a significant ruling for corporate contract law, U.S. District Judge Max O. Cogburn Jr. of North Carolina found that a consumer had adequate notice of an arbitration agreement embedded within a double-sided contract. The decision can be found here.
The 2022 and 2023 contracts in question had a front-side disclaimer mentioning that an arbitration provision and jury trial waiver were included by reference. Judge Cogburn noted that the arbitration provision was validly incorporated by reference, irrespective of whether the plaintiff had direct visibility of it. This ruling underscores the enforceability of such provisions, assuming appropriate disclaimers are present to inform the consumer of their existence.
This judgment is likely to have significant implications for corporations ensuring their contract terms are binding, even when certain elements are not directly visible to the consumer at first glance.