sweetnjguy29's Journal: Arbitration Agreements

On Marketplace this morning, consumer advocate Jamie Court made a very imprecise statement of law while discussing arbitration clauses in credit card agreements. He remarked that the 7th Amendment guarentees a right to a trial by jury. This is not exactly true. The Supreme Court decided in Colgrove v. Battin that the Seventh Amendment preserves the right of a trial by jury in federal civil cases as it "existed under the English common law when the amendment was adopted."

Furthermore, there is nothing in the US Constitiution preventing a State from denying a trial by jury for a civil matter. Moreover, Mr. Court failed to mention that it is completely permissible to knowingly waive your right to a trial by jury.

The problem with consumer arbitration agreements is that they are unconscionable. They are in small print. They are made by one party without the knowledge of the other party. They are made by one party who has disproportionate bargaining power and knowedge of the law. They are unfair. And they usurp the right of the consumer to go to court over a wrong done to them. This issue has nothing to do with the seventh amendment.

If you have a disagreement with a company and they want to make you arbitrate, contact an attorney immediately to determine your rights. Don't sign or agree to anything without legal counsel since State and Federal laws pertaining to the validity of arbitration agreements vary wildly.