NJ Assembly Passes Bill Limiting Forum Clauses

Law360, New York (December 19, 2013, 4:40 PM ET) -- The New Jersey Assembly on Thursday approved legislation that would prevent businesses from forcing consumers to litigate or arbitrate contract disputes in potentially burdensome venues outside of the state.

Passed in a 53-26 vote, the measure targets what lawmakers view as an increasing amount of forum selection clauses in consumer contracts and mandates that such pacts make New Jersey the forum for resolving disputes. Conditions and terms otherwise would be invalid.

Speaking last month before the Assembly Consumer Affairs Committee, Assemblyman Patrick J. Diegnan Jr., D-Middlesex,...
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