Southland Corp. v. Keating

This case presents the questions (a) whether the California Franchise Investment Law, which invalidates certain arbitration agreements covered by the Federal Arbitration Act, violates the Supremacy Clause and (b) whether arbitration under the federal Act is impaired when a class-action structure is imposed on the process by the state courts.

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Appellant Southland Corp. is the owner and franchisor of 7-Eleven convenience stores. Southland’s standard franchise agreement provides each franchisee with a license to use certain registered trademarks, a lease or sublease of a convenience store owned…