Why Offer Arbitration Opt-Out As I understand it, in the United States there is no legal obligation for a company to offer its customers the opportunity to opt-out of their arbitration agreement. So why do some companies offer their customer a very short window in which they can opt-out of the arbitration agreement? Does offering the limited opt-out option give the company some added legal protection? (It doesn’t seem to be for the customer's benefit or it wouldn’t have a time limit, so I assume it must offer some legal or strategic benefit for the company to include it?)
Companies that operate worldwide have to comply with the law everywhere they operate. Some jurisdictions consider mandatory arbitration in standard-form consumer contracts to be unenforceable - providing the out may overcome this.
Issues of strategy rest with counsel, not the client. Thus, in the situation you posit, the lawyer is not required to follow the client's desires. One might observe, however, that a competent lawyer will avoid the conflict entirely by addressing the issue before accepting the client. If the client is firm in wanting to direct the lawyer's negotiation or litigation strategy, and the lawyer is unwilling to do so, the lawyer should decline to take on the case. When I practiced, prospective clients who wanted to run things were very politely declined and shown the door. I don't see anything unethical about accepting such conditions from a prospective client, but the attorney isn't required to do so, and can decline the employment.
This is contract law. There is nothing in legal codes that stipulated that this is valid, but rather that by signing a document that allowed for a signatory to void the contract if one of the terms was broken (don't do drugs... don't do criminal acts) is a valid agreement and the contract documented it was signed, thus the clean roommate was allowed to void his agreement without penalty for the exit because of the terms within. You can call it a loophole or a clause but it's perfectly valid as the contract was entered without any duress by both parties and the terms were violated. It should also be pointed out most shows in the vein of "Judge Judy" are not actually being handled in a real courtroom setting or real civil trial, but a set that is designed to look like a court room. What is actually going on is a legal process called "Binding Arbitration" where both parties in a disagreement sign a separate contract stating that they will agree to the decision of a neutral arbiter, who need not be a judge (though having a legal background is very helpful). With rare exception, the outcome cannot be appealed or elevated to a real civil court (unless the losing party is not cooperating with the arbiter's judgement, or the case is dismissed without prejudice, which is judge speak for allowing a civil case to be refiled or filed with another court. Typically this happens when the plaintiff is the victim of something that requires a little more legal authority in the judgement.). They also don't typically do this in a real court room but in a conference room. The court room trappings in these tv shows are for the audience. Arbitration does not create a legal precedence and typically the requested settlement must be small claims ($5,000 or less) though Judge Judy type shows will pay for travel and lodging for both parties and their witnesses regardless of outcome.
This is not illegal if the transaction has any relationship to the foreign country (this limitation is called the minimum contacts test). These agreements called choice of law or forum selection clauses are routinely honored. It usually isn't illegal for a clause to exclude a United States court as a forum as to the parties to the contract. The Restatement (Second) of the Conflict of Laws § 80 (1971), a source often relied upon by courts regarding common law rules upon which they have no binding precedents, states that: [T]he parties agreement as to the place of the action cannot oust a state of judicial jurisdiction, but such an agreement will be given effect unless it is unfair or unreasonable. This doesn't actually divest the U.S. courts of jurisdiction over the case, but does mean that if you bring the case in a U.S. court in circumstances where there is no reason that the clause isn't valid and applicable, that your case will be promptly dismissed, possibly with an award of attorney fees and costs against you for trying to evade a valid contractual provision. The law concerning the scope of a choice of forum clause's application, and who decides that question, can be somewhat involved, but in particular cases, where the existence of a binding contract is undisputed and no exceptions to the general rule upholding these clauses is present, the enforcement of a choice of forum clause is often uncontroversial. As Wikipedia explains (in the forum selection clause link above): In Future Industries of America v. Advanced UV Light GmbH, 10-3928, the United States Court of Appeals for the Second Circuit in New York City affirmed the dismissal of a case that sent the parties to Germany because the forum selection clause made German courts the exclusive forum. By contrast, the same court in Global Seafood Inc. v. Bantry Bay Mussels Ltd., 08-1358, affirmed the refusal of the lower court to refer the parties to Ireland because the clause was not exclusive, and the litigation continues in America. The state of New York has a statute expressly dealing with those circumstances under which a New York court may not dismiss a case on the grounds of forum non conveniens if the parties' contract provides that the agreed upon venue is a court in New York and if the transaction involved an amount more than $1 million. Currently, a U.S. Circuit Court split is emerging over whether forum selection clauses in a contract supersede pre-existing arbitration clauses in regulatory membership rules, such as FINRA. Statutory exceptions may apply in some cases. For example, under U.S. law, a provision allowing a debt collector to bring suit in consumer debt collection cases outside the place where the consumer debtor resides is void as a matter of public policy under the Fair Debt Collection Act. But, as a general rule, such clauses are not prohibited. Two of the leading cases upholding such clauses in U.S. law are M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1, 32 L. Ed. 2d 513, 92 Sup. Ct. 1907 (1972) (discussed in this law review article) and Carnival Cruise Lines, Inc. v. Shute, 499 U.S. 585 (1991). And, although both of these cases were in the specialty of admiralty law there is no reasoning in these cases confining the holding of these cases to a maritime law setting. More law review treatment can be found here.
First of all, there is no breach - they said they would pay it "over the course of the first year"; in what way is the first week not part of the first year? Second, breaching a contract doesn't always allow the aggrieved party to terminate it: in fact, being able to terminate is only for the most egregious of breaches or ones that are specifically spelled out as giving a right to termination. For example, failure to deliver (or pay) on time or in full would not allow termination, only damages.
What kind of contract would that be? One about... arbitration? One about &quot;I hereby relinquish my claim for payment of X?&quot; --- children cannot be taken away from their father, no matter what. - OP That contract is void in germany because this contract not only violates public policy, it tries to modify something that is regulated by law into a way that does offer less than the law demands as a minimum. That's not allowed in Germany. Further, a clause that gives custody to the father by default is also Sittenwidrig in Germany, and thus void under §138 BGB. So would be a clause that gives it to the mother by default by the way. In a case of controversy, only a court order can assign guardianship. And only the court can take guardianship away. When the kid is born its guardianship gets assigned to the parents as guardians by §1626 BGB. While it is possible to give your partner guardianship if you're not married under 1626a BGB it is explicitly impossible to assign guardianship for any compensation to either party (e.g. the mother or the new guardian may not receive anything other than the guardianship in the specific paper) under 1626b BGB. Thus a contract that does anything else in addition to guardianship, like a prenup, voids at least the guardianship clauses. And you have to tell the court about that assignment of guardianship under ($1626d BGB). Now comes the kicker: §1628 BGB forces the parents to apply to the court to solve any problems of huge impact, such as guardianship: So technically, mediation results are fully non-binding and you can not mandate it. Also, since all marriages are through the state, it needs a formal instrument of the state to be dissolved. The only three ways that the state ever allowed this to be done after WW2 were a) annulment through a court, which only was possible till 1998, or b) divorce through a court, c) death of one of the marriage partners. Yes, it takes a judge to divorce a marriage under $1313 BGB or one of the two married to die. Because you can't divorce without a filing in court, a clause that demands to divorce in some way that is not including §1313 BGB, that clause would be void. It might be legal to have a clause that demands to try to solve issues in arbitration before filing for divorce or sorting the belongings in such a way, but it can't supplant the court requirement.
This would appear to be a simple application of contract law - the exchange of money for a promise (to sell at a fixed price in the future). Option contracts are only regulated if they relate to options over securities (like company shares) - not if they are over personal property (like baseball cards).
I can answer for the U.S., if that's helpful. The general rule, in the United States, is that covenants not to compete are enforceable as long as they are reasonable. What constitutes "reasonable" varies from state to state. Factors considered generally include: What kind of actual harm will come to the business if you go to a competitor? In other words, is this rote language they include in every contract, or did they put it in yours because you know all the secret formulas and have the customer list memorized? Is it reasonable in time, location, and scope? Something preventing you from taking any job anywhere in the United States for ten years won't be enforceable; something preventing you from taking a job with the exact same title in the same industry in the same town for the next six months might be. The general rule at common law was that covenants not to compete were unenforceable restraints of trade; the fact that they're enforceable at all is later law created by each jurisdiction, and that means it's going to vary based on your specific jurisdiction. If you want to know whether it's okay to take a specific job based on a specific non-compete you signed, you will need to talk to a legal professional licensed in your jurisdiction--and even she may not be able to tell you for sure.