08-01-2012, 11:46 PM
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#9 (permalink)
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| Lustful Cockmonster
Unedited
Join Date: Jun 2007 Location: Sydney, Australia
Posts: 51,807
My Mood:  SL Join Date: October 2004 | Supreme Court backs AT&T, limits class-action suits - USATODAY.com Supreme Court Imposes Limits On Class Actions : NPR Quote:
The U.S. Supreme Court has handed corporations a major victory. By a 5-4 vote, the court ruled Wednesday that companies can enforce contracts that bar consumers and employees from banding together to bring class action suits.
Ever read that long cell phone contract you signed when you enrolled for service? Well, look again. It likely has a provision requiring all disputes to be resolved by arbitration and barring consumers from banding together in a class action. Your credit card agreement, your cable agreement and maybe even your employment agreement have similar clauses.
Many states have ruled such contracts illegal and unenforceable, among them California. In Wednesday's case, a California couple sued on behalf of themselves and others who were charged $30.22 in sales tax for the supposedly free phone they got when signed up for service with AT&T Mobility. If they won, the class could potentially win millions of dollars versus the small amount — possibly only $30.22 — that each person would win in an individual arbitration.
But on Wednesday, the U.S. Supreme Court ruled that the federal arbitration law enacted to encourage arbitration trumps the state law, effectively blocking consumers from bringing their claims as a group.
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