This article addresses different approaches to the settlement of disputes between consumers and merchants that exist under the European and the United States ('US') law. It examines the different understanding of the freedom of contract in these legal systems. Based in this theoretical premise, it analyzes legal foundations for the limits on arbitration clauses in consumer contracts under the European Union law. The article uses comparative law methodology in order to explain why these limits do not exist under the US law. Finally, it suggests a way to reconcile the two approaches through policing of unconscionable arbitration clauses.
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