Bill

Bill > S1190


NJ S1190

Limits forum of consumer contract disputes to New Jersey.


summary

Introduced
02/03/2020
In Committee
02/03/2020
Crossed Over
Passed
Dead
01/11/2022

Introduced Session

2020-2021 Regular Session

Bill Summary

This bill prohibits terms and conditions in a consumer contract that require the dispute be resolved in a venue, forum, or jurisdiction outside of the State of New Jersey. This requirement could only be waived upon the advice of counsel. This bill ensures that consumers are not forced by businesses to resolve their disputes in distant and costly forums. Consumer contracts increasingly contain forum-selection clauses that require litigation or arbitration to take place outside of New Jersey, making dispute resolution costly and difficult for consumers. These contracts are typically standardized forms drafted with no input from the consumer, and are offered on a take-it-or-leave-it basis. The consumer, often the less sophisticated party, agrees to the contract without the benefit of an attorney, and may not be able to afford to travel to resolve a dispute. The bill also exempts insurance companies duly licensed or authorized to transact business under the insurance laws of this State and eligible surplus lines insurers from the consumer contract requirements under the bill. Consequently, these insurance companies and eligible surplus lines insurers could contractually require consumers to arbitrate disputes outside of this State. The bill does not apply to insurance companies duly licensed or authorized to transact business under the insurance laws of this State, or to any eligible surplus lines insurers allowed to conduct business in this State under section 11 of P.L.1960, c.32 (C.17:22-6.45).

AI Summary

This bill prohibits consumer contracts from requiring disputes to be resolved outside of New Jersey, with the exception of insurance companies and eligible surplus lines insurers. The bill aims to ensure that consumers are not forced to resolve disputes in distant and costly forums, as consumer contracts often contain forum-selection clauses that make it difficult and expensive for consumers to resolve disputes. The bill allows for the venue requirement to be waived only upon the advice of counsel, and it applies to consumer contracts executed on or after the 90th day following the bill's enactment.

Committee Categories

Business and Industry

Sponsors (2)

Last Action

Introduced in the Senate, Referred to Senate Commerce Committee (on 02/03/2020)

bill text


bill summary

Loading...

bill summary

Loading...
Loading...