A couple from New Jersey, who were left with serious injuries after their Uber crashed, have been told they cannot sue the company because of the terms they accepted when using the app. Despite arguing that they had not understood they were forfeiting their right to sue, state judges ruled that the couple had clicked a "confirm" button multiple times agreeing to Uber's terms of use. The terms state that all claims must be resolved in arbitration, meaning the dispute is settled through a third party rather than in court.
Background
In a recent case in New Jersey, a couple who were injured in an Uber crash were denied the right to sue the company due to the terms of use they agreed to when using the app. The couple, identified as Michael and Danielle Simonetti, were rear-ended by an Uber driver in August 2019. They sustained serious injuries, including a broken pelvis for Michael and a herniated disc for Danielle.
The Simonettis filed a lawsuit against Uber, but the company argued that the couple had agreed to mandatory arbitration when they signed up for the service. Arbitration is a form of dispute resolution where an independent third party, known as an arbitrator, hears the case and makes a binding decision.
Court Ruling
The Superior Court of New Jersey ruled in favor of Uber, finding that the Simonettis had "knowingly and voluntarily" agreed to mandatory arbitration by clicking a "confirm" button multiple times when they created their Uber account. The court also dismissed the couple's argument that they had not understood that they were forfeiting their right to sue by agreeing to arbitration.
Implications
The ruling has raised concerns among consumer advocates, who argue that mandatory arbitration clauses in consumer contracts can prevent victims of accidents from seeking justice in court. Arbitration proceedings are often held in secret, and the decisions made by arbitrators are not subject to judicial review.
Top 5 FAQs on Mandatory Arbitration in Uber Contracts
1. What is mandatory arbitration?
Mandatory arbitration is a process where disputes are settled through a third party, known as an arbitrator, rather than in court.
2. Why do companies like Uber use mandatory arbitration clauses?
Companies argue that mandatory arbitration clauses save time and money compared to lengthy court battles. They also claim that arbitration preserves the privacy of both parties involved.
3. What are the disadvantages of mandatory arbitration?
Mandatory arbitration clauses can prevent victims from seeking justice in court, where they have the right to a jury trial and the ability to appeal decisions. Arbitration proceedings are also often held in secret, and the decisions made by arbitrators are not subject to judicial review.
4. Can I opt out of mandatory arbitration with Uber?
No. The Uber terms of use do not allow riders to opt out of mandatory arbitration.
5. What should I do if I have been injured in an Uber accident?
If you have been injured in an Uber accident, it is important to seek medical attention and contact a personal injury attorney immediately. An attorney can help you understand your rights and options and can advise you on whether to pursue arbitration or file a lawsuit.
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