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40 Ne. J. Legal Stud. 1 (2020)

handle is hein.journals/neastjol40 and id is 1 raw text is: 

2020 / Mandatory Arbitration Clauses / 1


      MANDATORY ARBITRATION CLAUSES IN
        CONSUMER CONTRACTS: A LEGALLY
  PERMISSIBLE MEANS OF DENYING CONSUMERS
    THE  CONSTITUTIONAL RIGHT TO LITIGATE
           CONTRACT DISPUTES IN COURT
         AND  THE  RIGHT   TO  TRIAL   BY JURY


                           by


                Victor D. L6pez, J.D., Esq.*


I. INTRODUCTION
   Mandatory  arbitration clauses in consumer contracts have
had a checkered past in the United States. Courts historically
viewed  arbitration as a means  of  settling disputes with
significant disfavor, a fact that has been noted by many courts,
including the United  States Supreme  Court  in numerous
decisions as well as by Congress.'

   Congress enacted the Federal Arbitration Act (FAA) in 1925
in order to overcome the judicial resistance to arbitration and
declare a national policy to favor arbitration of claims that
parties agree to settle through arbitration.2 Since its enactment,
the U.S. Supreme Court has interpreted the FAA as requiring
that questions of arbitrability . . . be addressed with a healthy
regard for the federal policy favoring arbitration3 and has

* Cypres Family Distinguished Professor in Legal Studies in Business,
Department of Accounting, Taxation and Legal Studies in Business, Hofstra
University, Frank G. Zarb School of Business. The author gratefully
acknowledges the summer research grant that facilitated his research,
including this article.