As I understand it, in the United States there is no legal obligation for a company to offer its customers the opportunity to opt-out of their arbitration agreement. So why do some companies offer their customer a very short window in which they can opt-out of the arbitration agreement?

Does offering the limited opt-out option give the company some added legal protection? (It doesn’t seem to be for the customer's benefit or it wouldn’t have a time limit, so I assume it must offer some legal or strategic benefit for the company to include it?)


Companies that operate worldwide have to comply with the law everywhere they operate. Some jurisdictions consider mandatory arbitration in standard-form consumer contracts to be unenforceable - providing the out may overcome this.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.