| Court: | US Supreme Court |
| Facts: | Casarotto appeals on the grounds that Subway's mandatory arbitration clause violates Montana's rule that such things have to be in underlined capital letters on the first page of a contract. |
| Posture: | Appeal from Montana Supreme Court; this is actually the second time the USSC has granted cert-- it was previously remanded for further consideration based on another decision. |
| Issue: | Is Montana's law compatible with the Federal Arbitration Act? |
| Holding: | No. Reversed. |
| Rule: | States may not pick and choose which pieces of a contract are enforceable (i.e., price, service, but not arbitration). |
| Reasoning: | The Montana law treats arbitration contracts separately, which is in conflict with Federal law. If their rule applied to all contracts, it would be different, but they've got no business trying to limit the authority of federal statute. |
| Dicta: | |