Agreeing to mandatory arbitration means a consumer waives their right to litigate the case through class action or a jury trial.The consumer agreement will often define the mandatory arbitration process, including the rules, governing law, fee structure, and location.Arbitration is a process in which the parties submit their dispute to a third-party arbitrator and they issue a decision.Most consumer agreements require mandatory arbitration.Dispute Resolution → outlines the process that either party can take against the other to hold them legally accountable for a harm that has been suffered.Severability → if some of the terms are held to be illegal or otherwise unenforceable, the remainder will still apply.Statute of limitations → defines the amount of time a consumer has to bring a claim after the harm is suffered.For example, it may release the company from any liability caused by the consumer or a third party.Indemnification → in the consumer context, indemnity protects companies from harms that they did not cause.Common terms found within this section:.Often limits the kind of damages the consumer can seek.Governed by applicable law and will not apply if contrary to it.Limitations of Liability → limits the amount of exposure a company faces in the event a claim is made by the consumer.Many consumer agreements allow the company to terminate the relationship at any time for any reason.Termination → outlines the circumstances which allow the company to end the relationship.Privacy Information → outlines the personal data that the company may collect from you, how it will be used, and any options for the consumer.Charges → outlines the consumer’s financial obligations towards the company.Services → outlines the company’s obligations towards the consumer.Each consumer agreement is unique, but they commonly include these sections:.The consumer is presumed to have read and understood the agreement once accepted.Consumer agreements are typically accepted by simply using or paying for the service or product.For example, if a guest in your house uses your television they can also be bound by your contract with your cable provider.In certain instances, the “consumer” label will be extended to third parties.Consumer agreements are generally between the consumer and the company, including any subsidiaries, assignees, or agents of the company.
For more information on consumer contract basics, check out ’s overview
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