Taco Bell Franchise’s Arbitration Bid Chopped Up

An arbitration clause in a Taco Bell job application is unenforceable because it’s unclear whether it applies to franchisees, a California appeals court ruled (Mendoza v. Century Fast Foods, Inc., 2016 BL 374132, Cal. Ct. App., 2d Dist., No. B267158, unpublished 11/9/16).

The ruling underscores that arbitration is a creature of contract law that is subject to ordinary rules of contract interpretation. The franchisee might have been successful if the arbitration clause used its name rather than a vague term.

Jesus Mendoza sued franchisee Century Fast Foods Inc. for allegedly failing to provide meal and rest breaks ...