Arbitration Carve-Out
Categories of dispute excluded from the arbitration obligation.
Common carve-outs cover intellectual property claims, injunctive relief, small claims actions, and — since 2022 — sexual assault and sexual harassment claims by force of federal statute. Carve-outs shape the residual class action risk a company carries and are the first thing to check when assessing whether a mass filing was properly commenced.
See also
- Small Claims Carve-OutA clause term preserving the right to bring qualifying claims in small claims court.
- Ending Forced Arbitration of Sexual Assault and Sexual Harassment ActThe 2022 federal statute giving claimants the option to void pre-dispute arbitration agreements for sexual assault and harassment claims.
- McGill RuleCalifornia's rule that a contractual waiver of the right to seek public injunctive relief in any forum is unenforceable.
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