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Expert Analysis

NJ High Court Casts Doubt Over Arbitration Agreements

Law360, New York (December 2, 2014, 11:16 AM EST) -- The New Jersey Supreme Court recently cast doubt on the enforceability of arbitration clauses in consumer agreements that lack clear language specifying that consumers have given up their rights to litigate claims in a court. Atalese v. U.S. Legal Services Group LP (N.J. Sept. 23, 2014). It is an open question whether the ruling will survive federal court scrutiny. Nevertheless, any company doing business in New Jersey that uses an arbitration clause in its contracts — consumer or otherwise — should immediately review the clause to ensure it passes muster under Atalese....

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