This bill amends Section 6 of P.L.2003, c.95 (C.2A:23B-6) to invalidate certain arbitration agreements between consumers and business entities. Specifically, it introduces a new provision stating that an arbitration agreement will not be valid if it is applied to a dispute that is unrelated to the terms of the contract and would otherwise be invalidated by generally applicable contract defenses found at law or in equity. This change aims to protect consumers from being bound by arbitration agreements in situations where the disputes do not pertain to the original contractual terms.

The bill emphasizes that while arbitration agreements are generally valid and enforceable, this new provision creates a limitation on their applicability in consumer-business relationships. The act will take effect 90 days after enactment and will apply to agreements to arbitrate that are issued, executed, or renewed on or after that date.

Statutes affected:
Introduced: 2A:23B-6