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

The public policy exception in Oregon is an important exception to the enforcement of arbitration agreements. This exception prevents parties from enforcing an arbitration agreement that violates the public policy of Oregon. This exception is applied when a court determines that an arbitration agreement is contrary to a statute or rule of public policy in the state. For example, if a court finds that an arbitration agreement infringes upon the rights of a party, such as a minor, or if a court finds that the agreement involves a matter of public safety that should be determined by a court, the court could refuse to enforce the arbitration agreement due to the public policy exception. The public policy exception is important because it allows the courts to recognize situations where an arbitration agreement should not be enforced and gives parties the option of having their issues decided by the courts rather than by arbitration. This can help ensure that the public policy of Oregon is followed and that any rights of parties are not infringed upon.

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