Info:

Gloria Pitchfork thinks Jay Pitchfork needs a special tool to do his handyman work around the house as an alternative to having him committed for his dementia. She finds a somewhat unique looking small handheld saw with multiple blades that looks like just the right tool, buys it and presents it to him on his birthday. It is manufactured and sold online by BIG BUSINESS MODERN TOOLS, a huge online rival to such places as Home Depot and the like carrying thousands of tools for the home fixer up types and sells millions of units per year.

Jay is ecstatic, and immediately opens it up, reads the very simple first page on how to use it, and does not look at the next three pages. He is at the new house he bought for spec you read about in earlier units, and while using the saw to cut an ordinary cut, the blade jumps free, even though he has securely attached it per theinstructions that came with it,slicing deep into his hand. He wraps it and rushes to the local hospital where he is stitched up. In his haste, he leaves it plugged in. Due to an apparent defect, it quickly catches fire, and his house burns to the ground.

Distraught, Jay comes to you, his trusty attorney, and says we have to sue for my injuries and loss, which exceeds over 200,000 in value of the house alone (unfortunately, the cut rate insurance Jay purchased does not over this loss). He says his son, Mitchell Pritchfork, tells him verdicts in the local Circuit Court are going for over 1 million dollars for such cases, and that the facts are clear the manufacturer/seller is liable for a defective product. You concur.

However, as you begin to review the instruction manual to make sure Jay did attach and use the saw correctly, you quickly see that begging on page 2, there is mandatory arbitration agreement wherein the buyer agrees that states:

All claims and disputes arising under or relating to this Agreement are to be settled by binding arbitration in the state of Alabama. The arbitration shall be conducted on a confidential basis pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Any decision or award as a result of any such arbitration proceeding shall be in writing and shall provide an explanation for all conclusions of law and fact and shall include the assessment of costs, expenses, and reasonable attorneys' fees. Any such arbitration shall be conducted by an arbitrator and awards are to be limited to loss of the value of the saw. An award of arbitration may be confirmed in a court of competent jurisdiction.

Jay is outraged and insists that is not legal.

What is your opinion why or why not this is enforceable, and if there are any loopholes or legal precedents to avoid it and litigate in the California Courts, known for their large awards to aggrieved consumers.? Cite applicable case law and statue supporting your position.