The Wild Arbitration Blows Retreat? On Implementation of the Unfair Contract Terms Directive in the Czech Republic

7 Pages Posted: 13 May 2011 Last revised: 13 Feb 2012

Date Written: April 20, 2011

Abstract

The EU Directive on unfair contract terms in consumer contracts (97/13/EEC) as a minimum harmonisation directive left Member States free to set up more intensive measures to protect consumers. However, the Czech Republic, stopping at the minimum level, allowed aggressive traders to incorporate in their form contracts arbitration clauses, which have led to a massive abuse of weak judicial control to the disadvantage of consumers. This paper focuses on the case-law of European Court of Justice on arbitration clauses in consumer contracts and its problematic implementation within Czech legal order as well as a welcomed recent shift in practice of lower Czech municipal courts.

Keywords: Consumer, Arbitration, Unfair Contract Terms

JEL Classification: K12, K41, K42

Suggested Citation

Pavelka, Tomas, The Wild Arbitration Blows Retreat? On Implementation of the Unfair Contract Terms Directive in the Czech Republic (April 20, 2011). Available at SSRN: https://ssrn.com/abstract=1837686 or http://dx.doi.org/10.2139/ssrn.1837686

Tomas Pavelka (Contact Author)

University of Cambridge ( email )

10 West Road
Cambridge, CB3 9DZ
United Kingdom

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