<br />unenforceable) violated the Supremacy Clause."
<br />
<br />Minnesota - the first state to adopt the Uniform Arbitration Act in 1957 - also
<br />recognizes a firm public policy requiring enforcement of arbitration agreements.'o Thus,
<br />like the FAA, Minnesota law favors arbitration as a speedy, informal, and inexpensive
<br />manner of resolving disputes.
<br />
<br />Contrary to the LFAs' assertions, the Arbitration Provisions are not void as
<br />unconscionable contracts of adhesion under Minnesota law. First, they are not contracts
<br />of adhesion. Under Minnesota law, a contract of adhesion is "a contract generally not
<br />bargained for, but which is imposed on the public for necessarv services on a 'take it or
<br />leave it' basis."11 The CSAs do not meet that definition. As a threshold proposition, the
<br />CSAs are not contracts imposed on the public for necessarv services, but rather
<br />contracts knowingly entered into for the purposes of entertainment services. Courts all
<br />across the country have consistently held that cable teleilision service is not a necessity,
<br />but rather a luxury with multiple alternatives for the consumer.12 That cable television is
<br />not a necessary service is evidenced by the variety of ever increasing available options
<br />such as satellite services, video rentals, broadcasters and others. In fact, only
<br />approximately 50% of television households in AT&T Broadband's Minnesota service
<br />area choose to receive their video programming from AT&T. Last year alone, satellite
<br />service penetration grew 30% in our service areas and is purChased by approximately
<br />15% of the households.
<br />
<br />Moreover, even if the CSAs could properly be characterized as adhesion
<br />contracts, not all adhesion contracts are unconscionable under Minnesota law.'3 Neither
<br />are agreements to arbitrate per se unconscionable. Mere inequality in bargaining power
<br />is an insufficient basis to invalidate an arbitration agreernent.'4 Rather, a contract is
<br />unconscionable only in the rare circumstances that "no man in his senses and not under
<br />delusion would make on the one hand, and as no honest and fair man would accept on
<br />the other."'5 Obviously, that standard has not been met here. In fact, very few, if any,
<br />customers. have voiced concerns about the Arbitration Provisions and, as described
<br />below, they inure to the great benefit of consumers by significantly reducing their
<br />
<br />"
<br />
<br />In overturning the California restriction on arbitration, the Supreme Court in Southland
<br />Corp., noted that Congress, in enacting the Federal Arbitration Act consciously rejected the "oid
<br />common-law hostility toward arbitration." Southland Corp., 465 U.S. 1, 14 (1984).
<br />'0 See Minn. Stat. S 572.08; Dunshee v. State Farm Mut. Auto. Ins. Co., 228 NW.2d 567,
<br />570 (Minn.1975) (detailing history of arbitration law in Minnesota).
<br />11 Schlobohm v. Spa Petite, Inc., 326 N.W.2d 920,924 (Minn. 1982) (emphasis in original).
<br />12 See Thomson v. Mediaone of St. Paul, Inc., slip. Op. At 4 (Minn. Dist. Ct. July 1, 1999)
<br />("cable service is a luxury; not a necessity"); see also Hassen v. MediaOne of Greater Florida,
<br />slip. Op. At 6-7 (Fla. Cir. Ct. Nov. 24, 1998) ("cable television, as a matter of law, is not a
<br />necessity, and even if it were, the same services were available to plaintiffs through a wide
<br />variety of alternatives, such as wireless cable television, videocassettes, satellite dishes, and
<br />television antenna"), atl'd by 751 So.2d 1289, 1290 (Fla. Dist. Ct. App. 2000). Smith v. Prime
<br />Cable of Chicago, 658 N.E.2d 1325,1332-33 (III. App. 1995) (holding that cable television is not a
<br />necessity such that its threatened loss will support an exception to the voluntary payment
<br />doctrine).. .
<br />13 See Vierkant v. AMCO Ins. Co., 543 N.W.2d 117,120 (Minn. App. 1996); see also Bank
<br />One v. Coates, 125 F.Supp.2d 819,831-32 (S.D. Miss. 2000).
<br />,. Ottman v. Fadden, 575 NW.2d 593, 597 (Minn. App. 1998) (citing Gilmer v.
<br />Interstate/Johnson Lane Corp., 500 U.S. 20, 23 (1991)).
<br />15 Vierkant, 543 N.W.2d at 120
<br />
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<br />P.39
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