Unfair Arbitration Agreements

In 2006, the Supreme Court of Buckeye Check Cashing, Inc. v. Cardegna, 546 U.S. 440, extended the doctrine of severability to illegal contracts, although one party had to settle an alleged infringement, even if the underlying contract containing the arbitration agreement was completely invalid. The only exception recognized by the court was when a party claimed that there was an illegal, fraud or other contractual defense recognized in the arbitration clause itself. When companies are struggling, he added, it`s usually because they`ve chosen not to make a fully tailor-made deal, but are content to “tinker” with standard arbitration rules set by organizations such as the American Arbitration Association (AAA) or the International Chamber of Commerce (ICC). Online transactions in the Gulf Cooperation Council (GCC) region, and more specifically in Dubai, have seen a phenomenal increase in recent times. However, reform is needed to improve consumer rights legislation. Once online transactions are successfully concluded, consumers often accept ambiguous arbitration clauses in other terms and thus incur additional costs and expenses. They may also waive their right to conduct the trial, which is a primary consideration and should be guaranteed. This article aims to examine Dubai`s current legislation and judicial approaches to consumer rights. In essence, possible solutions to protect consumers from proof of arbitration. In the absence of general measures to combat compulsory arbitration, further progress has been made with regard to certain restrictions.

In 2009, Franken successfully amended the Department of Defense Appropriations Act of 2010 to address the application of mandatory arbitration procedures by defense companies. The concrete case that prompted the change concerned serious allegations of sexual assault, harassment and discrimination against a female employee of Halliburton. The Frankish amendment prohibited any defense firm with $1 million contracts from imposing a binding arbitration agreement in any event regarding Title VII civil rights act claims or tort claims related to sexual assault or harassment. . . .

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