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

The public policy exception to the enforcement of an arbitration agreement in Ohio is a legal principle that gives the court system the power to refuse to enforce a specific arbitration agreement if it goes against a public policy of the state. This exception is found in Section 2711.03 of the Ohio Revised Code, which allows courts to refuse to uphold an arbitration agreement when it conflicts with a public policy or statute, as long as the policy or statute is deemed to be of “paramount public importance”. Examples of public policies that could be used to refuse the enforcement of an arbitration agreement in Ohio include a public policy disallowing the enforcement of unconscionable contracts, agreements that would defeat public welfare laws, and agreements that would interfere with the interests of the state. The public policy exception to the enforcement of an arbitration agreement is intended to protect the public from agreements that are considered to be unfair, or that would impede the interests of the public. In Ohio, the courts are specifically tasked with making this determination in order to ensure the protection of Ohio citizens’ rights.

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