Legal Term
online marketplace seller dispute resolution arbitration clause enforceability
Legal Definition
The legal assessment of whether a clause in an online platform's user agreement, which mandates that buyers and sellers resolve disputes through private arbitration instead of court litigation, is valid and can be compelled by a judicial authority.
In Plain English
It's about if you can be forced to settle fights with online sellers in secret arbitration, not in open court, and whether that forced agreement actually holds up legally.
Example in a Contract
Clause 15. Binding Arbitration for Marketplace Transactions. Any dispute, claim, or controversy arising from a transaction between a Buyer and a Seller on the Platform shall be resolved exclusively by binding arbitration administered by JAMS under its Commercial Arbitration Rules, and the parties waive their rights to a jury trial, class actions, and any court proceedings.
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