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Split U.S. Supreme Court: Federal Arbitration Act Preempts California Rule

WASHINGTON, D.C. - (Mealey's) The Federal Arbitration Act (FAA) preempts a California rule established in Discover Bank v. Superior Court (113 P.3d 1100 [Cal. 2005]) that classifies most collective-arbitration waivers in consumer contracts as unconscionable, a split U.S. Supreme Court ruled April...

Supreme Court Upholds AT&T's Contract Clause Prohibiting Class-Wide Arbitration

On April 27, 2011, the United States Supreme Court issued an important decision upholding an arbitration clause barring class-wide arbitration. The decision has important implications for telecommunications and other consumer contracts, including website terms and conditions. In AT&T Mobility LLC...

California Court Avoids Concepcion By Striking Arbitration Agreement Without Considering Class Action Waiver

A recent decision by the California Court of Appeal underscores the importance of making arbitration provisions with class action waivers as consumer-friendly as possible - even after the U.S. Supreme Court's landmark ruling in AT&T Mobility v. Concepcion, which held that state laws barring the...