Abstract
The Supreme Court has supported the FAA’s preference for enforcing arbitration clauses and has extended it to forced arbitration provisions. In DirecTV v. Imburgia, the Supreme Court upheld a mandatory arbitration clause in a consumer service agreement, which additionally prohibited class arbitration. The Court reasoned that the FAA clearly states that written provisions in contracts that mandate arbitration are enforceable as all other contracts are enforceable. Companies throughout the United States use forced arbitration for employment and consumer contracts, including those for car leases. Forced arbitration clauses in consumer contracts ensure that customers settle their disputes with a company through arbitration rather than through court proceedings. Many consumers are unaware that sellers have subjected them to these mandatory arbitration proceedings. In the automobile industry, sales contracts and leases in almost all transactions include forced arbitration clauses. All 50 states give automobile dealers the exclusive ability to decide what they include in their sales or lease contracts, including mandatory arbitration clauses.
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