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?)


1 Answer 1


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.

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