summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill invalidates the enforcement of certain arbitration agreements. Specifically, the bill provides that an agreement to submit to arbitration, contained in a contractual relationship consented to by a consumer and a business entity, will not be valid if the business entity or consumer seeks to apply the agreement to a dispute that is unrelated to the terms of the contract and would be invalidated by generally applicable contract defenses found at law or in equity if applied.
AI Summary
This bill amends existing law to invalidate certain arbitration agreements, which are contracts where parties agree to resolve disputes through a neutral third-party arbitrator instead of going to court. Specifically, it states that an arbitration agreement between a consumer and a business will not be considered valid if either party tries to use it to resolve a dispute that is not related to the original contract's terms, or if the dispute could be invalidated by standard legal or equitable contract defenses, meaning common reasons why a contract might be considered void or unenforceable. This change aims to prevent businesses from forcing consumers into arbitration for issues outside the scope of their original agreements or for disputes that would otherwise be resolvable through traditional legal means.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 01/13/2026)
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/2026/S3169 |
| BillText | https://pub.njleg.gov/Bills/2026/S3500/3169_I1.HTM |
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