Legal Question in Consumer Law in California

forfietting rights

Is it possible to forfeit rights to sue a company, by signing a purchase order, that refers to an agreement that, says by purchasing the product the consumer agrees to foreit rights to file litigations and arbitrations against the company selling the product/service?

Is it lawful? Are there ways around it? Must it be a notarized document, to bear weight?


Asked on 11/17/05, 10:10 pm

2 Answers from Attorneys

H.M. Torrey The Law Offices of H.M. Torrey

Re: forfietting rights

No, a seller may not completely limit or prevent all of a buyers remedies in a contract. This would be violative of public policy. If you would like further assistance in this matter, contact us directly.

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Answered on 11/17/05, 10:25 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: forfietting rights

Businesses often attempt to limit consumers' rights to sue them.

Depending on the type of limitation, and the political philosophy of the judge you get, these claimed limitations may or may not be enforceable.

A company may not disclaim its obligation to provide you with a safe product (one that does not kill or physically injure you). Other types of provisions often attempted to be included in consumer contracts can include arbitration clauses -- you, as a consumer, should avoid agreeing to these because arbitration clauses usually favor the business over the consumer (arbitration usually costs consumers lots of money up front, more than going to court, and consumers usually lose).

Courts are more likely to enforce these types of contractual provisions against businesses making contracts with other businesses as opposed to businesses contracting with consumers.

Sometimes a court will find the terms of a contract are "unconscionable" (outrageous) or that the consumer had no real choice but to accept the contract (a "contract of adhesion").

Of course, there's no way to find out for sure how a court or judge will rule until after you file a lawsuit. You are free, and I would also encourage you, not to buy products or services from businesses that attempt to impose unfair contract terms.

Whether or not something is notarized is not usually important unless the contract involves the purchase or sale of real estate, or there is a dispute over the authenticity of the signature.

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Answered on 11/17/05, 10:49 pm


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