What is the public policy exception to the enforcement of an arbitration agreement?

The public policy exception to the enforcement of an arbitration agreement is a rule in Georgia, which allows for a party to challenge the enforcement of an arbitration agreement if its enforcement would violate the state’s public policy. This exception applies when the agreement is unconscionable, illegal, or when its enforcement would be contrary to the fundamental public policy of the state. Under the public policy exception, a party can challenge the enforcement of an agreement if it finds that it was illegally entered into, it limits or denies certain rights and freedoms guaranteed under the Constitution, or when the actions required under the agreement are prohibited by certain laws, regulations, or statutes. Additionally, if enforcing the agreement would be contrary to the public policy of the state, then the agreement may be unenforceable. In Georgia, if a party believes that the enforcement of an arbitration agreement violates the state’s public policy, then it can challenge the agreement in court. The court will then consider the merits of the argument and decide whether the agreement should be enforced or not. If the court finds that the agreement does indeed violate public policy, then it may choose to invalidate the agreement.

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What is the public policy exception to the enforcement of an arbitration agreement?

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