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C - Sternlight's Proposed Amendments to the Consumer Arbitration Statute

Published online by Cambridge University Press:  16 November 2009

Edward Brunet
Affiliation:
Lewis and Clark College, Portland
Richard E. Speidel
Affiliation:
Northwestern University, Illinois
Jean E. Sternlight
Affiliation:
University of Nevada, Las Vegas
Stephen J. Ware
Affiliation:
University of Kansas
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Summary

AN ACT PROTECTING CONSUMERS' ACCESS TO COURT

SHORT TITLE OF ACT

This Act shall be known as the Act Protecting Consumers' Access to Court of 2006.

DEFINITIONS

For the purposes of this Act,

  1. (a) commerce includes all transactions arising out of interstate or international commerce;

  2. (b) a consumer is any person who uses, purchases, acquires, attempts to purchase or acquire, or is offered or furnished any real or personal property, tangible or intangible goods, services, or credit for personal, family or household purposes, and includes passengers and shippers of goods on common carriers in commerce.

PROHIBITION OF CONSUMER ARBITRATION

Subject to the provisions of Section 4 of this Act, a contract between a consumer and a provider of goods or services is invalid to the extent that it purports to use binding arbitration to deny the consumer access to courts that would otherwise be available to the consumer to enforce legal claims.

EXCEPTION

Notwithstanding the provisions of the foregoing Section 3 of this Act, this law shall not preclude enforcement of an arbitration agreement made knowingly and voluntarily with respect to a dispute existing between the parties at the time the agreement is made, so long as such dispute is specifically described in the arbitration agreement and so long as such arbitration agreement is signed.

Type
Chapter
Information
Arbitration Law in America
A Critical Assessment
, pp. 375 - 376
Publisher: Cambridge University Press
Print publication year: 2006

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