Reference no: EM133199859

Roberto Basulto and Raquel Basulto, who did not speak English, responded to an ad on Spanish-language television sponsored by Hialeah Automotive, LLC, which does business as Marysville Dodge. Marysville Dodge's staff understood that neither Mr. Basulto nor Mrs. Basulto spoke or read English and conducted the entire transaction in Spanish. They explained the English-language contract, but did not explain an accompanying arbitration agreement. The arbitration agreement limited the amount of damages that the buyers could seek in court to less than $5,000, but did not limit Marysville Dodge's right to pursue greater damages against the buyers in court. Mr. Basulto and Mrs. Basulto bought a Dodge Caravan from Marysville Dodge and signed the contract in blank (i.e., leaving some terms to be filled in later). Staff at Marysville Dodge later filled in a lower trade-in allowance than agreed upon, and the company refused to change it later when Mr. Basulto and Mrs. Basulto protested. Consequently, Mr. Basulto and Mrs. Basulto returned the van-having driven it a total of seven miles-and asked for a return of their trade-in vehicle. However, it had already been sold. The buyers filed a lawsuit in a Snohomish County Superior Court against Marysville Dodge. The dealer sought arbitration. Was the arbitration agreement unconscionable? Why or why not? Identify which type of unconscionability, if any, is at issue in this case. Explain your answer by applying the legal rules from this chapter.