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Survey Shows Public Support for the Fair Arbitration Act

April 29, 2009 - Posted by Jessica Paquette

A new survey shows that nearly 60 percent of likely voters oppose mandatory arbitration clauses in employment and consumer contracts.

Mandatory arbitration clauses require a consumer or employee to agree to settle any disputes in arbitration, which is when a private third party reviews and settles the dispute. In doing so, individuals waive his or her right to sue, to participate in a class action lawsuit, or to appeal.  These clauses are often hidden in the fine print of contracts, such as cell phone and employment contracts.

The Fair Arbitration Now Coalition says that mandatory arbitration denies Americans their Seventh Amendment right to trial in civil disputes. According to the survey, many Americans are unaware that their right to a trial is taken from them when they sign contracts with mandatory arbitration clauses.

The surveyalso found that 59 percent of likely voters support the Arbitration Fairness Act. The Act specifies that mandatory arbitration clauses cannot be applied to employment, consumer, or franchise disputes. It also prohibits mandatory arbitration in disputes arising under any statute intended to protect civil rights.

Categories: Workers' Rights

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