Business v. Class Action

 

A contract signature.  Photo by Frank McMains, of www.lemonsandbeans.com, licensed via Creative Commons.
How much are you signing away to get that sweet, sweet 1994 Toyota Tercel?

An article in the New York Times caught my attention today.  It’s about the fallout from the 2011 Supreme Court decision in AT&T v. Concepcion, which stated that corporations can write clauses into contracts to prevent class action lawsuits.  To do this, the clauses require customers to settle disputes through arbitration (instead of in an actual court of law) and to relinquish their right to litigate as a class.  In effect, the contracts waive the customers’ right to due process.  Since that decision, the legal world has changed.  For the better or for worse?

Keep reading the full post to see what’s up with these clauses and to learn a tip on how to get around them.

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