- Target:
- Consumers
- Region:
- United States of America
Arbitration clauses are the fine print in contracts with telephone providers, credit card providers, car dealers, hospitals, cell phone providers, banks and insurance companies that take away your constitutional right to access to the court system.
By signing a contract or signing up for a service with one of these provisions you INSTANTLY and almost unknowingly have your access to a judge, a jury and the entire legal system taken from you. You "agree" to have your dispute against the phone company or credit card company decided by an arbitrator who can arbitrarily your case WITHOUT following the law.
And you have almost no rights to appeal this decision. And guess who pays for the arbitrator? Thats right, the company. So why do you think companies have almost uniformly put these provisions in their contracts?
To be able to violate laws without the nasty aftertaste of a lawsuit bringing their actions to light. And the reason you don't know about this problem is that arbitration hearings are secret. No press is allowed.
Imagine how many more victims of the Ford Pinto would have been killed or injured if the cases had not been filed in a public forum?
We, the undersigned, call upon the United States Senate and House of Representatives and specifically the Senators and Representatives from our state to enact an amendment to the Federal Arbitration Act Section 10 and 11 as follows:
Section 10. Same; vacation; grounds; rehearing
(a) In any of the following cases the United States court in and for the district wherein the award was made may make an order vacating the award upon the application of any party to the arbitration
(1) Where the award was procured by corruption, fraud, or undue means.
(2) Where there was evident partiality or corruption in the arbitrators, or either of them.
(3) Where the arbitrators were guilty of misconduct in refusing to postpone the hearing, upon sufficient cause shown, or in refusing to hear evidence pertinent and material to the controversy; or of any other misbehavior by which the rights of any party have been prejudiced.
(4) Where the arbitrators exceeded their powers, or so imperfectly executed them that a mutual, final, and definite award upon the subject matter submitted was not made.
(5) Where an award is vacated and the time within which the agreement required the award to be made has not expired the court may, in its discretion, direct a rehearing by the arbitrators.
(6) where the arbitrator makes a mistake of law or fact.
(7) where the arbitrator fails to remand the matter to a Federal court of competent jurisdiction when a consumer seeks to proceed in the case in a class action capacity.
(8) where the arbitrator fails to remand the matter to a court of competent jurisdiction when a consumer seeks to proceed in the case before a court at the onset of the litigation and before an answer or responsive pleading is filed and alleges that the arbitration agreement was procured by fraud, deception, or unfair means.
(b) The United States district court for the district wherein an award was made that was issued pursuant to section 590 of title 5 may make an order vacating the award upon the application of a person, other than a party to the arbitration, who is adversely affected or aggrieved by the award, if the use of arbitration or the award is clearly inconsistent with the factors set forth in section 582 of Title 5.
Section 11. Same; modification or correction; grounds; order
In either of the following cases the United States court in and for the district wherein the award was made may make an order modifying or correcting the award upon the application of any party to the arbitration
(a) Where there was an evident material miscalculation of figures or an evident material mistake in the description of any person, thing, or property referred to in the award.
(b) Where the arbitrators have awarded upon a matter not submitted to them, unless it is a matter not affecting the merits of the decision upon the matter submitted.
(c) Where the award is imperfect in matter of form not affecting the merits of the controversy.
(d) Where the substance of the case was heard before the arbitrator and the plaintiff in the action seeks to proceed on the matter as a class action before the United States court in and for the district wherein the award was made
The order may modify and correct the award, so as to effect the intent thereof and promote justice between the parties.
You can further help this campaign by sponsoring it
The Enact an amendment to the Federal Arbitration Act Section 10 and 11 petition to Consumers was written by Lance Raphael and is in the category Law Reform at GoPetition.