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See also Unconscionability (Federal Arbitration Act). State contract defenses may be applied to invalidate arbitration clauses if those defenses apply to contracts generally. Doctor's Assocs., Inc. v. Casarotto, 517 U.S. 681, 116 S. Ct. 1652, 1656, 134 L. Ed. 2d 902 (1996).
'In assessing whether a contractual provision should be disregarded as unconscionable, Illinois courts look to the circumstances existing at the time of the contract's formation, including the relative bargaining positions of the parties and whether the provision's operation would result in unfair surprise.' Cognitest Corp. v. Riverside Publ'g Co., 107 F.3d 493, 499 (7th Cir. 1997) (citing J.D. Pavlak, Ltd. v. William Davies Co., 40 Ill. App. 3d 1, 351 N.E.2d 243, 246 (Ill. App. Ct. 1976)). A contract is unconscionable when, viewed as a whole, 'it is improvident, oppressive, or totally one-sided.' Streams Sports Club, Ltd. v. Richmond, 99 Ill. 2d 182, 457 N.E.2d 1226, 1232, 75 Ill. Dec. 667 (Ill. 1983). 'The presence of a commercially unreasonable term, in the sense of a term that no one in his right mind would have agreed to, can be relevant to drawing an inference of unconscionability but cannot be equated to it.' ...
