In American Express V

question 13

Multiple Choice

In American Express v.Italian Colors Restaurant,American Express (Amex) entered into agreements with Italian Colors Restaurant and other merchants that accept American Express credit cards.The agreement required that all disputes be settled through arbitration and prohibited class actions.The merchants filed a class action antitrust claim against Amex,arguing that they should be allowed to bring the claim as a class because the cost of expert analysis to prove the case exceeded the maximum recovery available to an individual merchant plaintiff.How did the U.S.Supreme Court decide?

• A) The Court ruled for the merchants because not allowing the case would frustrate the purpose of having antitrust laws.
• B) The Court ruled in favor of Amex, holding that the Federal Arbitration Act (FAA) does not permit courts to invalidate a contract based solely on the grounds that a plaintiff's dispute resolution costs exceed any potential amounts to be recovered. The Court concluded that the FAA reflects the overarching principle that arbitration is a matter of contract and that courts had a responsibility to rigorously enforce arbitration agreements according to their terms.
• C) The Court ruled for the merchants because the waiver of class arbitration was not voluntary.
• D) The Court ruled for Amex, holding that it did not violate antitrust laws.

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Definitions:

Visual Cortex

The part of the cerebral cortex that processes visual information, located in the occipital lobe of the brain.

Plasticity

The brain’s ability to change, especially during childhood, by reorganizing after damage or by building new pathways based on experience.

Braille

A tactile writing system used by people who are blind or visually impaired, involving patterns of raised dots that represent letters, numbers, and punctuation marks.

Corpus Callosum

A large band of neural fibers connecting the two hemispheres of the brain and facilitating interhemispheric communication.