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Wednesday, September 16, 2026

Can a tiny font size make an arbitration agreement unconscionable? - HRD America

Fired employee sues Empire Nissan and others, alleges discrimination and wrongful termination

Small and unreadable print makes it hard or impossible for employees to read and understand an arbitration agreement, the California Court of Appeal recently said. This problem affects procedural unconscionability since it involves the contract formation process, the court added.

The plaintiff in the case of Fuentes v. Empire Nissan, Inc. et al. applied to work for Empire Nissan, Inc. She signed an arbitration agreement. Nissan later made her sign a second agreement about trade secrets, then a third agreement similar to the second one.

Nissan terminated the plaintiff. She filed a lawsuit alleging discrimination and wrongful termination against three defendants – Nissan, Romero Motors Corporation, and Oremor Management & Investment Company.

Nissan filed a motion to compel arbitration. The trial court denied the motion upon finding the arbitration agreement unconscionable. This prompted Nissan to appeal.

Read more: Court sides with California car dealer, enforces arbitration agreement

Arbitration is proper

The California Court of Appeal for the Second District disagreed with the trial court’s decision and ordered it to compel arbitration. This dispute should proceed via arbitration because the arbitration agreement’s substance was fair, the appellate court said.

First, the appellate court ruled that the font size was not a problem of substantive unconscionability. Regardless of...



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