Arbitration: validity of agreements to arbitrate.

Plain English Breakdown

The official source material does not provide specific details on which types of agreements will become unenforceable.

Making Some Agreements to Use Arbitration Unenforceable

This law makes certain agreements to use arbitration unenforceable if those agreements would not be allowed under the Federal Arbitration Act.

What This Bill Does

• Makes some written agreements to submit controversies to arbitration unenforceable.
• These agreements are ones that wouldn't be allowed by federal laws about arbitration.

Who It Names or Affects

• People who make written agreements to use arbitration
• Businesses that have arbitration clauses in their contracts

Terms To Know

Arbitration

A way of solving disputes outside of court where a neutral person makes the final decision.

Federal Arbitration Act

A federal law that says arbitration agreements are usually valid and enforceable, except for some specific types of cases.

Limits and Unknowns

• The bill does not specify which exact types of agreements will be unenforceable.
• It relies on the Federal Arbitration Act to determine what kinds of arbitration agreements cannot be used.

Official Summary Text

AB 2155, as introduced, Aguiar-Curry.
Arbitration: validity of agreements to arbitrate.
Existing law provides that written agreements to submit controversies to arbitration are valid and enforceable. Existing federal law, the Federal Arbitration Act, also deems arbitration agreements valid, irrevocable, and enforceable, except for certain specified types of agreements, such as agreements to arbitrate claims of sexual harassment.
This bill would make agreements to submit to arbitration unenforceable where the agreement would not be enforceable under the Federal Arbitration Act.

Current Bill Text

Download Bill PDF