The newfound rage in corporate contracts is the mandatory arbitration provision. In basic and simple terms, this provision mandates that any disputes related to, arising out of or concerning the contract must be arbitrated and not litigated.
The purchaser gives up the right to class action litigation.
The purchaser also gives up the right to a jury trial in any dispute covered by the provision.
A current five-person majority on the U.S. Supreme Court favors these provisions. Corporations are being encouraged to insert these provisions into a variety of contracts. The story is skillfully told by Lina Khan, How Corporate America Shut the Courthouse Doors to Average People" posted online at Bill Moyers & Company, previously published as "Thrown Out of Court" in the Washington Monthly.
Will insurance companies and insurance contracts be far behind?
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