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Government

Jun. 26, 2012

SB 491: protecting consumers’ right to join together

SB 491 invalidates class action waivers in adhesion contracts in a generally applicable manner that does not conflict or interfere with the FAA. By Brian S. Kabateck and Scott M. Malzahn of Kabateck Brown Kellner LLP


By Brian S. Kabateck and Scott M. Malzahn


In the wake of a key U.S. Supreme Court decision and its progeny that threaten to undermine consumers' ability to obtain compensation in a class setting for their injuries, the state Legislature is considering whether to pass a significant bill known as SB 491. The bill aims to invalidate boilerplate language in adhesion contracts that purports to waive consumers' rights to join or consolidate claims.


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