Federal Legislation Introduced to Bar Pre-Dispute Arbitration Provisions in Consumer Contracts
According to the ABA Journal Law News two Democratic lawmakers have introduced legislation that would prevent the inclusion of mandatory arbitration clauses in consumer contracts as well as those contracts implicating the consumer's civil rights.
Though the parties could still agree to arbitrate their disputes after they arise, the bill would make unenforceable pre-dispute arbitration provisions within the scope of the legislation. Article here and except below:
Two Democratic lawmakers have introduced legislation that would bar enforcement of some mandatory arbitration agreements.
The Arbitration Fairness Act would bar mandatory arbitration agreements involving employment, consumer rights, franchises or civil rights, according to a press release.Agreements to arbitrate in these areas could be made after a dispute arises, but not before.
The law is designed to prevent consumers from being forced into arbitration.
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