Litigation
Aug. 22, 2013
Arbitration loophole exposed
Manufacturers often agree to defend their retail partners in litigation. Are claims against the retailer partners also subject to arbitration provisions in such agreements? By Robert J. Herrington and Jeff E. Scott
More and more frequently, manufacturers are including an arbitration clause with a class-action waiver in their agreements with consumers. A series of recent Supreme Court decisions has increased the likelihood that these provisions will be enforced and provide a measure of protection against class actions and other aggregate litigation. But in many cases manufacturers also have agreements in which they agree to indemnify...
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