In recent years, commercial parties such as franchisors have become increasingly proactive in addressing their exposure to class actions. One preventative measure that parties often take is to include clauses in their commercial agreements requiring that all disputes be resolved by arbitration.
Class Action Waivers in Commercial Agreements
While the legal status of class action waivers is evolving in the United States, largely due to a U.S. Supreme Court decision earlier this year, franchisors that operate in the United States and Canada also should be aware of the differences in how the two countries address this important element of franchise contracts.
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