ÿWPCò  MëßiݺÉ>¬Ë 9œT~éÕýé³ßN'ïD¶úÅÓ`Ûï¡JqI÷ëÌHöŸõˆ®àp‘S´¥ÃêÓ‹W®„;.T¸þõ\öŽ#£?3e‰a%`=Lð­¹±Ðz˜õÉ ¾R˜‘$`££®Çjw=B¹z+Û D÷[¬ ¼À*é»a¯¬>?è\~ÖõŸ@çþ‚Jr°)×Y¹ò®´¥ž/ Grf‹¼ö¨6%\8=p×Zű ?V0Í¿ìŒþ_z†ÓºˆÜoK¹õn‚#wÊïn{4×ô’Ͼf} ZjðÜ÷­ˆKOp—Û^Ý5N·§•PÛÕ¬ØF5ÈÌÏk!œf¥fa‘Pò6R¬KØÏ´ìjâÙ) æ'Ê[²zÕF€np äà ¹¿f½R+ó‹qdç1qrf°ïðTb×ÏE vó´ë Kø€ÓØt!²=“ÍaÓÞÎuØQÙJ•Ó-µnEénèªcšcY§k&±MaáuU&9ŸS"×o¤µ¿¡ ¾ im¨gYr߯FoËNpN˜¾ÑÇ™ µH :à077¾ãn†_“ 9ÎÒ¨&»ÎÚLA 3ƒ3¶Ø!¥Ã™Ã<(zÙ£§”è+ *# LU:W %‘ 0(—b ¿w@Ë4 .6U:999999999999999999999 AQsÆÄ 0DŠ 0DÎ 0D  D/V B… B¢ D3¿ ˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLlÎ, øð AZ‹"Arial RegularX($¡¡- ù - LMDNUODPQDRDSUTUÓ€%sŒ&3|x^ ùÝ ƒ"¯"ÝÝ  ÝÔ€ X¯XXXÔÔ€ óX X¯ÔÓ  Óò òÔ Ad ÔFILEDÔ€ X¯X óÔÐ  ÐÌApril€19,€1999ÌÌCecil€Crowson,€Jr.ÌAppellate€Court€ClerkÔdAhÔó ó,c½¬AZ‹"Arial Regular!"#$&Cþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5(3¯$¢¢Ý ƒ!ÝÝ  Ý(3¯$££Ý ƒ!ÝÝ  Ý($$””ò òÚ  Ú1Ú  Úó ó(('÷ÿ dxd düÿP Pd'''''ÿÿdxdÝ ƒ!ÝÝ  ÝñUñ›ñUñѰÑÒ€°ÒÒ„°ÒÑTR[¤ AØ'ÿ Legal3Ø' AØ'ÿ Legalÿ3Ø'TÑÑ€ÑÑ7€¯XXdæXXdð7ÑÑ  ÑÑ  Ñò òÔ€¼63¼XXÔÓ  ÓñUñßr€ )<,(j 8` `€€@Eô ` 8ttxP,ð  rß›ñUñà@  êàIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ  Ðà@¦¦(êàAT€NASHVILLEó óÔ€X¯X¼¼63ԈР ÐÌÌÌÌœPAMELA€BROWN,à ˆ àà à àà 8 àà  à)›Ð È À Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)Ìà Ø àœPlaintiff/Appellee,›à à àà 8 àà  à)Ð ”Œ Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)à è àAppeal€No.Ð zr  Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)à è àœ01„A„01„9807„CH„00368›Ð `X  МVS›.à Ø àà 0 àà ˆ àà à àà 8 àà  à)Ð F>  Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)à è àœDavidson€Chancery›Ð ,$  Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)à è àœNo.€97„2465„II›Ð   МKAREMOR€INTERNATIONAL,€INC.à  à)›à è àà @ àà ˜ àà ð àà H! àà  # àœÐ øð  Ðand€HAGER€MARKETING€GROUPà  à)Ð ÞÖ  Ð(a/k/a€HMG),à ˆ àà à àà 8 àà  à)›Ð ļ Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)Ìà Ø àœDefendants/Appellants.›à 8 àà  à)Ð ˆ ÐÌÌà@U U êàAPPEALED€FROM€THE€œCHANCERY€COURT›€OF€œDAVIDSON€COUNTY›ˆÌà@#êàAT€œNASHVILLE,€TENNESSEE›ˆÌÌà@8 8 êàTHE€HONORABLE€œCAROL€L.€MCCOY,€CHANCELLORˆÌÌÌÌÌKEVIN€H.€SHARPÌCHRISTINE€J.€LAIRDÌ424€Church€Street,€Suite€2800ÌNashville,€Tennessee€37219Ìà Ø àAttorneys€for€Plaintiff/AppelleeÌÌSCOTT€D.€CAREYÌ511€Union€Street,€Suite€1700ÌNashville,€Tennessee€37219Ìà Ø àAttorney€for€Defendants/AppellantsÌÌÌÌÌà@DD$êàAFFIRMED€AS€MODIFIEDˆÌà@¿¿(êàAND€REMANDEDˆÌ›ÌÌÌÌœà Ø àà 0 à›à ˆ àà à àà 8 àà  àà è àà @ àBEN€H.€œCANTRELL,Ìà Ø àà 0 àà ˆ àà à àà 8 àà  àà è àà @ àPRESIDING€JUDGE,€M.S.›ÌÌÌCONCUR:ÌœCAIN,€J.ÌCOTTRELL,€J.ÌÌ›ÓÓò òÔ€„ŒU„XX¯Ôòòà@tt(êàO€P€I€N€I€O€Nóóó óÔ€X¯X„„ŒUԈРš:’39 Їà Ø àà 0 àThe€Chancery€Court€of€Davidson€County€refused€to€enforce€anÏarbitration€provision€in€a€product€distribution€agreement.€€The€court€reasoned€that€theÏwritten€agreement€was€an€adhesion€contract€and€that€the€parties€had€not€bargainedÏover€the€arbitration€provision.€€We€affirm€œas€to€the€claims€not€related€to€the€writtenÏagreement.€€As€to€the€claim€involving€a€breach€of€the€agreement,€we€modify€the€lowerÏcourtððs€order€to€reflect€that€the€question€is€still€openÌÌ.›à@²²-êàò òI.ó óˆÐ œ”  ÐÌà Ø àà 0 àIn€July€of€1997€Pamela€Brown€filed€an€action€in€the€Chancery€Court€ofÏDavidson€County€naming€KareMor€International,€Inc.€and€Hager€Marketing€Group€asÏdefendants.€€The€complaint€alleged€that€KareMor€was€a€network€marketing€companyÏfor€Mayor€Pharmaceutical€Laboratories,€Inc.,€a€marketer€of€vitamins€and€otherÏnutrients.€€According€to€the€complaint€Ms.€Brown€signed€a€distributor€agreement€withÏKareMor€in€January€of€1996€and€purchased€five€boxes€of€product€for€$2,790.00.€ÏAbout€a€week€later€she€attended€a€KareMor€event€in€Atlanta€and€was€persuaded€toÏpurchase€eight€additional€boxes€of€product€for€$18,520.€€She€later€spoke€with€aÏKareMor€area€coordinator€who€promised€to€help€her€get€her€money€back.€€œStill€later,›Ïa€KareMor€vice€president€promised€Ms.€Brown€that€the€company€would€make€someÏadjustments€to€the€product€if€she€would€return€part€of€it€to€the€company.€€She€returnedÏthe€œproduct,›€but€the€company€œkept€the€product€and€did€not€make€the€promisedÏadjustments.ÌÌ›à Ø àà 0 àThe€complaint€included€counts€of€fraudulent€inducement€to€enter€into€theÏdistributorship€agreement,€unfair€and€deceptive€practices€under€the€TennesseeÏConsumer€Protection€Act,€breach€of€the€distributorship€agreement,€and€conversion€ofÏher€property.Ìâ âÐ ˜706 Ðà Ø àà 0 àKareMor€filed€an€answer€admitting€that€Ms.€Brown€œbecame›€a€distributorÏâ âfor€the€company€and€purchased€the€product€described€in€the€complaint,€but€theÏanswer€denied€the€other€material€allegations.€€The€answer€contained€an€affirmativeÏdefense€alleging€that€Ms.€Brown€was€contractually€obligated€to€arbitrate€any€disputeÏshe€had€with€KareMor.ÌÌà Ø àà 0 àKareMor€then€filed€a€motion€for€summary€judgment€on€the€arbitrationÏdefense€and€attached€a€copy€of€the€œð ðDistributor›€Application€and€œAgreement.ð𛀀TheÏform€agreement€contained€some€general€information€on€the€front,€filled€in€by€Ms.ÏBrown,€and€a€section€showing€that€she€enrolled€in€a€plan€called€œð ðE„Plan:›€GoldenÏShowcase€Enrollment€Systemðð€at€a€œprice€of€$2,790.00.›€€Although€titled€ð ðApplicationÏand€Agreementðð€the€form€does€not€show€any€acceptance€by€the€company.€€In€theirÏstatements€of€undisputed€facts€filed€in€connection€with€the€motion€for€summaryÏjudgment,€however,€the€parties€agree€that€the€form€exhibited€with€the€motion€is€a€copyÏof€the€agreement€signed€by€Ms.€Brown.ÌÌà Ø àà 0 àThe€agreement€also€included€the€following€statements€on€the€front€pageÏin€very€small€print:€ð ðI€hereby€acknowledge€that€I€have€received€a€copy€of€KareMorÏInternationalððs€Policies€and€œProcedures.›€€I€have€read€and€understand€the€Terms€andÏConditions€on€the€back€of€this€agreement€and€agree€to€abide€by€the€Policies€andÏProcedures€of€KareMor€International,€Inc.ðð€€The€back€of€the€agreement€containedÏseventeen€ð ðTerms€and€Conditionsðð€in€print€only€slightly€larger€than€the€quotedÏlanguage€on€the€front.€€The€sixteenth€item€stated:ÌÓÓà8 Ø àà80 Ø ü!Ø ü!àThis€Agreement,€its€interpretation,€construction,€andÏenforcement,€shall€be€governed€by€the€laws€of€the€StateÏof€Nevada.€€Any€controversy,€dispute,€or€claim€relating€toÐ ¨9 26 Ðthis€agreement€between€the€parties€shall€be€resolved€byÏbinding€arbitration€in€Carson€City,€Nevada,€in€accordanceÏwith€the€rules€of€the€American€Arbitration€Association,€andÏany€judgement€of€the€Arbitrator€shall€be€entitled€toÏenforcement€by€any€court€having€jurisdiction€over€theÏparties.Ð 0 ¤0 ¤ ÐÌÓÓAt€the€bottom€of€the€back€page€the€companyððs€address€appeared€as:€ð ðKareMorÏInternational,€P.€O.€Box€21858,€Phoenix,€AZ€85036„1858.ðð€€There€œis€no€further€proofÏin€the€record.€€Consequently,€the€record€is€silent€as€to€the€circumstances€under€whichÏthe€parties€entered€into€the€agreement.›ÌÌà@––-êàò òII.ó óˆÐ øð ÐÌà Ø àà 0 àIn€1983€our€legislature€passed€the€Uniform€Arbitration€Act,€Tenn.€CodeÏAnn.€ðð€29„5„301,€et€seq.€€At€œlong›€last€an€agreement€to€arbitrate€became€binding€onÏthe€parties€in€Tennessee,€contrary€to€the€common€law€rule€and€the€interpretation€givenÏour€prior€statutes.€€òòSee€œMeirowsky›€v.€œPhipps›óó,€432€S.W.2d€885€(Tenn.€1968).€€But€œanÐ X P Ðagreement€containing€an€arbitraion€provision€does€not€require€the€parties€to€submitÏto€arbitration€disputes€unrelated€to€the€agreement.€€An›€arbitration€agreement€in€anÏemployment€contract€does€not€require€the€employee€to€submit€to€arbitration€a€claimÏunder€the€Tennessee€Human€Rights€Act.€€òòœJacobsen›€v.€œITT›€Fin.€Services€Corp.óó,€762Ð Ø'Ð # ÐF.€œSupp›.€752€(E.€D.€Tenn.€1991).€€If€a€contract€containing€an€arbitration€provision€isÏprocured€by€fraud,€the€plaintiff€does€not€have€to€œseek€arbitration€on›€the€right€toÏrescind.€€òòCity€of€Blaine€v.€John€Colemanóó€òòHayes€&€Assoc.óó,€818€S.W.2d€33€(Tenn.€App.Ð x-p&) Ð1991).€€œÌ›Ìà Ø àà 0 àThe€language€appearing€on€the€back€page€of€the€agreement€exhibitedÏto€the€motion€for€summary€judgment€says€ð ðany€controversy,€dispute€or€claim€relatingÏto€this€agreement€between€the€parties€shall€be€resolved€by€binding€arbitration€inÏCarson€City,€Nevada.ðð€€The€complaint€includes€four€counts,€three€of€which€œare€notÐ ¸8°15 Ðrelated€to€the€written€agreement.›€€A€claim€for€fraud€in€the€inducement€is€a€tort€claimÏnot€dependent€on€the€agreement.€€The€claims€for€violating€the€Tennessee€ConsumerÏProtection€Act€and€for€conversion€of€Ms.€Brownððs€property€are€œñQñlikewise›€ñQñnot›€claims€ð ðrelating€toÏthe€agreement.ðð€€œñOñSo,›€ñOññQñ›ñQññOñeñOññPñEñPñven€if€we€assume›€that€the€arbitration€provision€in€the€agreementÏwas€binding€on€the€parties,€Ms.€Brown€œwould€ñRñstill€ñRñnot€be›€required€to€arbitrate€these€claims.ÌÌà Ø àà 0 àThe€remaining€count€in€the€complaint€„„€for€breach€of€contract€„„€doesÏcome€within€the€language€of€the€agreement.€€The€chancellor,€however€held€thatÏð ðBased€on€the€œrationale›€used€in€[òòœBuraczynski›óó]€that€a€contract€of€adhesion€was€signedÐ  Ðand€the€analysis€provided€by€that€court,€the€court€finds€that€this€provision€is€in€anÏadhesion€contract€and€it€is€not€clear€and€it€was€not€fully€disclosed€at€the€time€that€itÏwas€signed€.€.€.€.ðð€€The€reference€toòò€œBuraczynski›óó€was€to€òòœBuraczynski›€v.€œEyring›óó,€919Ð ¨  ÐS.W.2d€314€(Tenn.€1996)€in€which€the€Supreme€Court€upheld€an€arbitration€provisionÏin€a€contract€between€a€physician€and€his€patient.€€The€Court€did,€however,€issue€aÏword€of€caution€that€ð ðsuch€agreements€may€constitute€contracts€of€adhesion€whichÏmust€be€closely€scrutinized€to€determine€if€unconscionable€or€oppressive€terms€areÏimposed€upon€the€patient€.€.€.€.ðð€€919€S.W.2d€at€316.ÌÌà Ø àà 0 àThe€Court€defined€an€adhesion€contract€as€ð ða€standardized€contract€formÏoffered€to€consumers€of€goods€and€services€on€essentially€a€ððtake€it€or€leave€itðð€basis,Ïwithout€affording€the€consumer€a€realistic€opportunity€to€bargain€.€.€.€ðð€(citing€òòBlackððsÐ ˆ,€%( ÐLaw€Dictionaryóó€40€(œ6th›€ed.€1990).€€òòId.óó€at€320.€€The€Court€went€on€to€say,€however,€thatÐ h.`'* Ðan€adhesion€contract€is€not€per€œse›€unenforceable.€€ð ðEnforceability€generally€dependsÏupon€whether€the€terms€of€the€contract€are€beyond€the€reasonable€expectations€of€anÏordinary€person,€or€oppressive€or€unconscionable.ðð€€òòId.óóÐ 4-0 ÐÌâ âœñSñÐ È7À04 ÐñSñ›à Ø àà 0 àOur€analysis€of€this€question€is€hampered€by€the€absence€of€anyÏâ âevidence€in€the€record.€€The€only€thing€that€is€established€is€the€agreement,€which€Ms.ÏBrown€admits€she€signed,€and€she€admits€that€it€did€contain€the€arbitration€provision.€ÏThere€is€no€proof€concerning€the€circumstances€under€which€Ms.€Brown€signed€theÏagreement.€€If€the€arbitration€provision€was€brought€to€her€attention€or€the€contract€hasÏsome€connection€to€Carson€City,€œNevada,€the€facts›€must€at€this€point€remain€in€theÏrealm€of€speculation.ÌÌà Ø àà 0 àKareMor€argues€that€Ms.€Brown€had€the€burden€to€furnish€proof€that€theÏð ðTerms€and€Conditionsðð€on€the€reverse€side€of€the€agreement€were€òònotóó€brought€to€herÐ èà Ðattention€if€she€is€to€escape€the€application€of€the€arbitration€provision.€€We€think,Ïhowever,€that€the€burden€was€on€KareMor€to€show€that€the€parties€actually€bargainedÏover€the€arbitration€provision€or€that€it€was€a€reasonable€term€considering€œthe›Ïcircumstances.€€In€òòParton€v.€œPirtle›€Oldsmobile€Cadillac„œIsuzu›,€œInc.óó,›€730€S.W.2d€634Ð h` Ð(Tenn.€App.€1987)€we€dealt€with€a€contract€containing€boilerplate€clauses€and€said,Ïð ða€party€who€signs€a€printed€form€furnished€by€the€other€party€will€be€bound€by€theÏprovisions€in€the€form€over€which€the€parties€actually€bargained€and€such€otherÏprovisions€that€are€not€unreasonable€in€view€of€the€circumstances€surrounding€theÏtransaction.ðð€€730€S.W.2d€at€638.€€Looking€at€the€four€corners€of€the€agreement€in€thisÏcase,€we€œcould›€œnot€say›€that€a€provision€buried€on€the€reverse€side€of€a€formÏagreement,€œallegedly€signed›€in€Tennessee,€requiring€that€any€dispute€over€theÏagreement€be€arbitrated€in€Carson€City,€Nevada,€was€a€reasonable€provision.ÌÌà Ø àà 0 àTherefore,€we€think€the€question€of€whether€the€parties€were€bound€byÏthe€arbitration€provision€is€still€open.€€But€the€chancellor€was€correct€in€denyingÏsummary€judgment€to€KareMor€œon€›that€point.Ìâ âÐ È7À04 Ðà Ø àà 0 àThe€judgment€of€the€court€below€is€affirmed€as€modified€in€this€opinion.€Ïâ âThe€cause€is€remanded€to€the€Chancery€Court€of€Davidson€County€for€furtherÏproceedings.€€Tax€the€costs€on€appeal€to€œKareMorñJñ,€InternationñJññKññJñ,€IñJññKññLñal,€Inc.ñLññMñ.ñMñ›ÌÌÓÓœñNñÌñNññNñÌñNññNñÌñNñ›à Ø àà 0 àà ˆ àà à àà 8 àà  àà è à____________________________Ìà Ø àà 0 àà ˆ àà à àà 8 àà  àà è àBEN€H.€CANTRELL,€Ìà Ø àà 0 àà ˆ àà à àà 8 àà  àà è àPRESIDING€JUDGE,€M.S.ÌÌÌÌCONCUR:ÌÌÌÌÌ_____________________________ÌWILLIAM€B.€CAIN,€JUDGEÌÌÌÌ_____________________________ÌPATRICIA€J.€COTTRELL,€JUDGEÌÐ  8"0 ÐÑ  ÑÔ€¼¼¼XX™MÔò òà@êê.êàœñTñIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ  Ðà@™™(êàAT€œNASHVILLEˆÌÌÌÌñTñó óñTñÔ‡X™MX¼¼¼ÔPAMELA€BROWN,à ˆ àà à àà 8 àà  à)Ð v n Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)Ìà Ø àPlaintiff/Appellee,à à àà 8 àà  à)Ð VN Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)à è àAppeal€No.Ð F> Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)à è à01„A„01„9807„CH„00368Ð 6.  ÐVS.à Ø àà 0 àà ˆ àà à àà 8 àà  à)Ð &  Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)à è àDavidson€ChanceryÐ   Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)à è àNo.€97„2465„IIÐ þ  ÐKAREMOR€INTERNATIONAL,€INC.à  à)à è àà @ àà ˜ àà ð àà H! àà  # àÐ öî  Ðand€HAGER€MARKETING€GROUPà  à)à è àAffirmed€as€ModifiedÐ æÞ  Ð(a/k/a€HMG),à ˆ àà à àà 8 àà  à)à è àand€RemandedÐ ÖÎ Ðà Ø àà 0 àà ˆ àà à àà 8 àà  à)Ìà Ø àDefendants/Appellants.à 8 àà  à)Ð ¶® ÐÔ#†¼¼¼XX™Mò6#ÔÔ€X™MX¼¼¼Ô›ÌñTññNñœñNññTñÔ€¼¼¼XX™MÔò òòòà@uu'êàJ€U€D€G€M€E€N€Tóóó óˆÐ –Ž МÔ€X™MX¼¼¼ÔÌ›ÓÓà Ø àà 0 àThis€cause€came€on€to€be€heard€upon€the€record€on€appeal€from€theÏœChancery€Court›€of€œDavidson€County,›€briefs€and€argument€of€counsel;€uponÏconsideration€whereof,€this€Court€is€of€the€opinion€that€œthe›€decree€of€the€ChancellorÏœshould€be€affirmed€as€modified.›€Ìà Ø àà 0 àIn€accordance€with€the€opinion€of€the€Court€filed€herein,€it€is,€therefore,Ïordered€and€decreed€by€this€Court€that€the€decree€œis€affirmed€as€modified.€›€€TheÏcause€is€remanded€to€the€œChancery€Court›€of€œDavidson€County›€for€œany€furtherÏproceedings€necessary€and›€for€the€collection€of€the€costs€accrued€below.Ìà Ø àà 0 àCosts€of€this€appeal€are€taxed€against€œKareMor€International,€Inc.,ÏPrincipal,›€and€œBaker,€Donelson,€Bearman€&€Caldwell,€Surety,›€for€which€execution€mayÏissue€if€necessary.ÌÌÓÓà Ø àà 0 àà ˆ àà à àà 8 àœ______________________________________Ìà Ø àà 0 àà ˆ àà à àà 8 àBEN€H.€CANTRELL,€PRESIDING€JUDGE,€M.S.Ìà Ø àà 0 àà ˆ àà à àà 8 à›ÌÌà Ø àà 0 àà ˆ àà à àà 8 àœ______________________________________Ìà Ø àà 0 àà ˆ àà à àà 8 àWILLIAM€B.€CAIN,€JUDGE›ÌÌÌñTññNñœñNññTñà Ø àà 0 àà ˆ àà à àà 8 àœ_____________________________________Ìà Ø àà 0 àà ˆ àà à àà 8 àPATRICIA€J.€COTTRELL,€JUDGEÌñTñ›