Understanding Your Legal Protections
Discover how to safeguard your rights and navigate complex terms with our expert guidance.
What does binding arbitration mean in consumer agreements?
Binding arbitration is a process where disputes are resolved outside of court, often limiting your ability to sue.
Why should I carefully read terms and conditions?
They contain critical rights information and may affect how you resolve disputes, which in turn may limit the relief you can get if you are harmed.
How can SmallType Foundation assist me?
We provide education and information on consumer rights and legal protections in everyday contracts. SmallType is not a law firm and does not take direct clients. SmallType believes there are legislative solutions that can solve the overuse of binding arbitration in contracts of adhesion, but does not do any lobbying.
Are arbitration clauses enforceable?
Yes, courts often uphold arbitration clauses, but knowing your rights can help you make informed choices when choosing what companies to do business with, and you can opt out where that is an option.
Common Types of Clauses That Take Away Your Remedies
Understand what these types of provisions mean.
What is a class action?
A class action is a lawsuit filed by one or more individuals on behalf of a larger group who have similar legal claims. It allows people with the same problems (e.g., people who have been injured by the same product) to collectively seek compensation or justice without each member having to file separate cases.
What is a class action waiver?
A class action waiver generally means (1) you can never initiate or participate in a class action, and (2) you won’t get the benefit of any class action filed by other people.
What is a jury trial waiver?
In federal court in the United States, the Seventh Amendment to the Constitution guarantees the right to a trial by jury in civil cases where more than $20 is at stake. Many states have similar protections in their state constitutions or state law. This ensures that a group of impartial citizens, rather than a judge (or a private arbitrator who is not a judge), decides who should win.
A jury trial waiver means that you cannot have your day in court before a jury of your peers. Instead, your case will be decided by a single judge, a single arbitrator, or a panel of arbitrators under the contract.
Are class action waivers and jury trial waivers enforceable?
They can be, but are not always. In most jurisdictions, a jury trial waiver in a contract is enforceable if it is “knowing and voluntary.” Decades-old Supreme Court precedent indicates that jury trial waivers are disfavored. Aetna Ins. Co. v. Kennedy ex rel. Bogash, 301 U.S. 389, 393 (1937) (“[A]s the right of jury trial is fundamental, courts indulge every reasonable presumption against waiver.”). State law can further prevent the enforceability of a jury trial waiver, but those state laws often do not apply, because most disputes between consumers and companies now are interstate.
Understanding Your Legal Rights Clearly
Explore essential tools and guides to help you navigate complex legal agreements confidently.
Decoding Terms & Conditions
Unpack the basics of legal agreements and why they matter to you.
Binding Arbitration Explained
Learn how arbitration clauses affect your rights and options.
Taking Action
Use our templates to send an opt out letter.