summary
Introduced
03/21/2022
03/21/2022
In Committee
03/21/2022
03/21/2022
Crossed Over
Passed
Dead
01/08/2024
01/08/2024
Introduced Session
2022-2023 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 terms and conditions in consumer contracts that require disputes to be resolved in venues, forums, or jurisdictions outside of New Jersey. The only exception is if the consumer waives this requirement upon the advice of counsel, as evidenced by the counsel's signature on the contract. The bill aims to ensure that consumers are not forced by businesses to resolve disputes in distant and costly forums, which can make it difficult for consumers to pursue their claims. The bill also exempts insurance companies licensed or authorized to do business in New Jersey, as well as eligible surplus lines insurers, from these consumer contract requirements.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 03/21/2022)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
---|---|
State Bill Page | https://www.njleg.state.nj.us/bill-search/2022/S2337 |
BillText | https://www.njleg.state.nj.us/Bills/2022/S2500/2337_I1.HTM |
Bill | https://www.njleg.state.nj.us/Bills/2022/S2500/2337_I1.PDF |
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