Arbitration Fairness Act of 2009 Introduced in the U.S. House of Representatives

The so-called Arbitration Fairness Act of 2009, introduced on February 12, would amend the current Federal Arbitration Act and its specific application to franchise agreements. Specifically, this bill would provide that no predispute arbitration agreement is valid or enforceable if it requires arbitration of a franchise dispute between a franchisor and a franchisee (among other disputes, including employment and consumer disputes, or arising under statutes designed to protect civil rights). Thus, the bill would void all arbitration provisions contained in franchise agreements.

Additionally, this bill would require the validity of an arbitration agreement to be determined by a court under federal law, and not by an arbitrator.

View the full text of this proposed legislation here.