The United States Constitution guarantees you the right to litigate your case in the courts and the right to a jury trial. Signing an Arbitration Agreement waives these rights.
Don’t Sign Away Your Constitutional Rights!
Consumers may encounter arbitration agreements when purchasing goods or services in various sectors, including banking, credit cards, financial services, home building, insurance and telecommunications.
When financing a vehicle or home improvement, entering a cell phone contract, opening a new bank account or obtaining approval for a credit card, consumers must look to see if there is an arbitration agreement as part of the contract. It may appear within the written contract, be buried in the fine print or terms and conditions, or possibly in the “Click” of an online agreement.
Businesses favor arbitration
Many consumer-facing companies have trended towards including an arbitration clause in their contracts. This “forced arbitration” is a form of resolving disputes outside of the courts. Instead of being able to go to trial before a judge and jury, cases are presented to an arbitrator who decides the case.
Consumers will be told that arbitration is a favorable term and that should a dispute and litigation be necessary, it would be faster and cheaper to litigate. Cheap litigation only favors the company—NOT YOU.
Avoid being stuck in arbitration.
(1) Do Not sign an Arbitration Agreement
If possible, do not sign an arbitration agreement when signing a contract. Sometimes an arbitration agreement is a stand-alone contract that you are not required to sign. If you are presented with an arbitration agreement, ask whether it is required. Do not agree to arbitration if possible.
(2) Read the Arbitration Agreement
Carefully read the language in the arbitration agreement. Sometimes the agreement will allow you to opt out of arbitration by submitting a request within a given time period. If the agreement permits you to do that, DO THAT! Opt-out clauses are often found in credit card agreements. Once an optout deadline passes, it’s too late.
(3) Negotiate the Arbitration Clause
Negotiate out the arbitration clause in your contract. If you have leverage (like at a car dealership), demand to remove or modify the arbitration clause.
(4) Strike the arbitration clause on the contract and initial the change.
Often many contracts are provided and executed electronically, making on-the-spot changes to a contract difficult or impossible. But if your contract is on paper, strike out the arbitration clause and initial your change. Make it clear that you did not agree to arbitration when you signed the contract, and that you only agreed to the remaining terms.
Seek Help from Experienced Consumer Lawyers
Flitter Milz has
litigated the enforceability of arbitration agreements countless times. Send your contract for a no-cost legal review. Our attorneys will determine whether your arbitration clause is binding.
You should not have to give up your Constitutional right to trial by jury.
Call Toll Free: 888-668-1225
Email: consumers@consumerslaw.com
