Docklands Solicitor

Who would have believed that an arbitration clause in a standard consumer contract might be ineffective! However

The Unfair Terms in Consumer Contracts Regulations 1999 say that “a contractual term which has not been individually negotiated shall be regarded as unfair if it causes a significant imbalance in the parties rights and obligations arising under the contract, to the detriment of the consumer”

and “excluding or hindering a consumer’s right to take legal action by requiring the consumer to take disputes exclusively to arbitration will be indicative of a term being unfair”.
So an arbitration clause in a standard consumer contract will probably be ineffective, unless it is explained to the consumer, who then consents having understood the implications

Labels: arbitration consumer contract