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H.R. 1396 (115th): Restoring Statutory Rights and Interests of the States Act of 2017

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The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress, and was published on Mar 7, 2017.


Restoring Statutory Rights and Interests of the States Act of 2017

This bill amends the Federal Arbitration Act to invalidate arbitration agreements between parties in certain commercial contracts or transactions if they require arbitration of a claim for damages or injunctive relief brought by an individual or small business arising from the alleged violation of a federal or state statute, the U.S. Constitution, or a state constitution, unless the written agreement to arbitrate is entered into by both parties after the claim has arisen and pertains solely to an existing claim.

The grounds upon which a contract with an arbitration agreement is revocable shall include federal or state statutes or court findings that prohibit an agreement to arbitrate if the agreement is unconscionable, invalid because there was no meeting of the minds, or otherwise unenforceable as a matter of contract law or public policy.

A court, rather than an arbitrator, shall determine whether an arbitration agreement is enforceable.