Arbitration Fairness Act and the Supreme Court
On Monday, the Supreme Court granted cert in the case of Stolt-Nielsen S.A. v. Animalfeeds International Corp. The court will determine whether class arbitration is consistent with the Federal Arbitration Act (FAA) when the arbitration agreement is silent on the issue. This case highlights the current legislative drive for the Arbitration Fairness Act, a proposal that would protect consumers and employees from binding mandatory pre-dispute arbitration agreements. The issue is particularly important to whistleblowers who often have no idea about the illegality they will confront at the time the employer requires them to sign such an agreement.
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