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The Arbitration Fairness Act of 2007: Are the Days of Mandatory Arbitration Provisions Numbered?

By John J. Jacko III
September 27, 2007

A 'consumer protection' bill that would bar as invalid and unenforceable mandatory arbitration provisions relating to, among other things, franchise disputes is presently referred to the Senate's Judiciary Committee and the House of Representatives' Committee on the Judiciary and its Subcommittee on Commerce and Administrative Law. If passed by Congress, the Arbitration Fairness Act of 2007 ('AFA') (S. 1782 and H.R. 3010) introduced by sponsors, Sen. Russ Feingold (D-WI) and U.S. Rep. Hank Johnson (D-GA), would significantly, in both the eyes of franchisors and their franchisees, amend the Federal Arbitration Act, 9 U.S.C. '1, et seq. ('FAA') to not only invalidate mandatory arbitration provisions in the context of franchise disputes, but also for consumer and employment disputes as well. (To see the text of the legislation or monitor its progress, see the Library of Congress' http://thomas.loc.gov/.)

In Wake of Ehleiter v. Grapetree Shores, Inc.

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