Are Arbitration Clauses Unfair?

Many standard terms and conditions contain arbitration clauses. As the recent case of Mylcrist Builders Limited v Mrs G Buck [2008] EWHC 2172 (TCC) which came before Mr Justice Ramsay demonstrates, when dealing with consumers, care must be taken to ensure that the implications of that arbitration clause are properly explained.

Facts:

The defendant, Mrs Buck, engaged the claimant, Mylcrist Builders Limited, to construct a single story extension to the front of her bungalow in Beltrise Herne Bay, Kent. A contract was formed on 8 December 2004 when Mrs Buck signed a letter, sent from Mylcrist Builders, which confirmed that they were to proceed with the works in accordance with their previously issued cost estimate and on their Standard Terms & Conditions as identified on the back of the letter. A dispute subsequently arose regarding whether or not certain sums had been included in the agreed price of £23,580 which had been set out in that letter. As their Standard