Arbitration clause

Contract language sending disputes to a private forum instead of court.

An arbitration clause is a term buried in most consumer contracts that says disputes go to a private arbitrator rather than a courtroom. You agreed to one the last time you clicked "I accept."

On its own, arbitration does not end a class action. What matters is whether the clause also contains a class-action waiver.

Related terms

• Class action - One lawsuit brought on behalf of everyone harmed the same way.
• Class representative - The named person who stands in for the whole class.
• Class certification - The court ruling that lets one case speak for everyone.
• Class-action waiver - A term saying you may only bring a claim for yourself, never as a group.
• Unconscionability - A contract term so one-sided a court refuses to enforce it.
• Contract of adhesion - A take-it-or-leave-it contract with no room to negotiate.
• Assent - Whether you actually agreed, and how the company proved it.
• Negative option billing - You are charged unless you act to stop it.