Conseco Finance Corporation—Alabama v. Boone

Summary

The Supreme Court of Alabama held that the installment contract substantially affected interstate commerce, allowing application of the Federal Arbitration Act. The court rejected the purchaser's unconscionability defense and reversed the trial court's denial of Conseco Finance Corporation's motion to compel arbitration, remanding for an order requiring arbitration.

Holdings

1. Conseco satisfied its initial burden of establishing that the installment contract substantially affected interstate commerce, so the Federal Arbitration Act applied.
2. Boone failed to prove that the arbitration provision was unconscionable; the provision was not materially distinguishable from arbitration provisions previously upheld by the court.

Questions Presented

1. Whether Conseco established that the installment contract substantially affected interstate commerce so that the Federal Arbitration Act applied.
2. Whether Boone proved that the arbitration provision was unconscionable and therefore unenforceable.

Disposition

reversed_and_remanded