Yes, Arbitration Clauses Can Reduce Class Action Exposure

Law360, New York (January 8, 2016, 12:18 PM EST) -- Four years after requiring enforcement of class arbitration waivers in consumer contracts in AT&T Mobility LLC v. Concepcion,[1] the United States Supreme Court recently returned to the issue in DirecTV Inc. v. Imburgia[2] and rebuked an attempt to evade the mandates of the Federal Arbitration Act (FAA) under the guise of state law contract interpretation. The majority opinion clearly shows that, absent any federal statute to the contrary, arbitration clauses with express class action waivers will be enforced. Such clauses (also referred to as bilateral arbitration clauses) will thus continue to be a powerful tool for companies wishing to reduce potential consumer class action exposure.[3]...

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