An employee who worked as a new car porter for a car dealership sued his employer for discrimination. Car porters get paid slightly more than the minimum wage. The dealership had in place an arbitration agreement that provided for the following. Employees seeking to take the dealership to arbitration must deposit with the general manager $500 or five days’ pay, whichever is less. Employees who prevail in full before the arbitrator pay nothing, and their deposit is refunded. If all or part of the arbitrator’s decision is in favor of the employer, the arbitrator’s fee and expenses are shared equally by both parties. However, in no case would the amount paid by the employee exceed the deposit. Is an arbitration agreement with these terms substantively unconscionable? Why or why not?

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