H.R. 3010House110th Congress (2007-2009)In Committee

Arbitration Fairness Act of 2007

Introduced July 12, 2007

Legislative Activity

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5 earlier actions
HouseCommittee Latest Action

Forwarded by Subcommittee to Full Committee by Voice Vote .

July 15, 2008

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HouseIntro Referral

Introduced in House

July 12, 2007

HouseIntro Referral

Referred to the House Committee on the Judiciary.

July 12, 2007

HouseCommittee

Referred to the Subcommittee on Commercial and Administrative Law.

August 10, 2007

HouseCommittee

Subcommittee Hearings Held.

October 25, 2007

HouseCommittee

Subcommittee Consideration and Mark-up Session Held.

July 15, 2008

HouseCommittee

Forwarded by Subcommittee to Full Committee by Voice Vote .

July 15, 2008

Floor Debate

24 members

What members said about H.R. 3010 on the floor

11 Republicans13 Democrats
John McCain
Sen. John McCainR-AZ · Jul 17, 2007

Reserving the right to object, Mr. President. Mr. President, if this were the first time that a 60-vote requirement were made, I would have some sympathy for the Senator from Illinois. I am having…

Carl Levin
Sen. Carl LevinD-MI · Jul 17, 2007

Mr. President, how much time remains? Mr. President, I yield myself 5 minutes. Mr. President, I think everybody in this body would like to leave Iraq better than we found it. That is not the current…

Joseph I. Lieberman
Sen. Joseph I. LiebermanD-CT · Jul 17, 2007

I thank the Chair I will yield to the Senator for the purpose of propounding a unanimous consent request but without yielding the floor. Mr. President, responding to the Senator from Georgia, I…

Robert Menendez
Sen. Robert MenendezD-NJ · Jul 17, 2007

Madam President, I rise in strong support of the Levin- Reed amendment. That is the amendment that, unlike the Iraq Study Group, has a date certain for changing and transitioning our mission and…

Lamar Alexander
Sen. Lamar AlexanderR-TN · Jul 17, 2007

Reserving the right to object, could we have the next Republican speaker be Senator Alexander? Mr. President, with this political stunt tonight, the Senate has reached the approximate level of the…

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Richard J. Durbin
Sen. Richard J. DurbinD-IL · Jul 17, 2007

Mr. President, I ask that the Chair notify me when I have spoken for 5 minutes. Mr. President, I thank the Senator from Texas for explaining his amendment. But when I hear him describe the Levin-Reed…

Jack Reed
Sen. Jack ReedD-RI · Jul 17, 2007

Mr. President, I thank the Senator for the kind words. And one of my first reactions was a bit of confusion. He referenced General Lamb, the British officer in Baghdad, expressing chagrin at the…

Chuck Hagel
Sen. Chuck HagelR-NE · Jul 17, 2007

Mr. President, I rise this afternoon to support the Levin- Reed amendment. As we know, Iraq is the most important issue facing our country today. The core challenge in Iraq is the cycle of violence,…

Harry Reid
Sen. Harry ReidD-NV · Jul 17, 2007

Mr. President, late this morning, I sent a letter to the distinguished minority leader, Senator Mitch McConnell. I addressed the letter ``Dear Mitch,'' and I will read the letter. There are no more…

Christopher S. Bond
Sen. Christopher S. BondR-MO · Jul 17, 2007

I object. Mr. President, I would comment that in the process of working out votes, the minority leader has offered to the majority leader to schedule votes on this and other amendments at an…

Benjamin L. Cardin
Sen. Benjamin L. CardinD-MD · Jul 17, 2007

Mr. President, I welcome the debate on the U.S. role in Iraq, and I urge my colleagues to allow us to vote on the issue. I think each of us was elected to cast our votes and this is the most critical…

Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Jul 17, 2007

Mr. President, I sat here for the last hour or so and listened to the discussion, and what one concludes is that, once again, we are locked in a debate about the future of Iraq. I think many people…

Sherrod Brown
Sen. Sherrod BrownD-OH · Jul 17, 2007

I object. The informal order established was Senator Alexander, Senator Landrieu, Senator Lieberman, myself, then a Republican, and then Senator Menendez. I ask unanimous consent that be the order.…

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John Cornyn
Sen. John CornynR-TX · Jul 17, 2007

Mr. President, I yield myself 10 minutes. I rise to discuss my amendment which lays out the consequences of a failed state in Iraq. As every parent of a teenager knows, one of the things you have to…

John Warner
Sen. John WarnerR-VA · Jul 17, 2007

I object. I thank the Presiding Officer. Mr. President, I am given an opportunity now, which I have been looking forward to, to have a little colloquy with my long-time friend, Senator Levin, now…

Charles E. Schumer
Sen. Charles E. SchumerD-NY · Jul 17, 2007

Well, I thank the Chair, and this is a historic night. The Senate will stay in session all night to debate the war in Iraq, something we should be doing. Frankly, Mr. President, we should have done…

Kay Bailey Hutchison
Sen. Kay Bailey HutchisonR-TX · Jul 17, 2007

Mr. President, I object. I objected in a timely manner. Mr. President, I know you did not hear me. I do not wish to keep the Finance Committee from meeting, except that we are being held for a very…

Barbara Boxer
Sen. Barbara BoxerD-CA · Jul 17, 2007

Mr. President, we are the greatest country in the world, and that is why I ask unanimous consent that amendment No. 2088 be withdrawn and that at 7 p.m. today the Senate vote on the Levin-Reed…

Susan M. Collins
Sen. Susan M. CollinsR-ME · Jul 17, 2007

Madam President, the war in Iraq is the greatest challenge facing our country. Unfortunately, the political debate in Washington has not been conducive to finding a solution, as political divisions…

Jim DeMint
Sen. Jim DeMintR-SC · Jul 17, 2007

Mr. President, you would never know it from our debate the last couple of weeks, but we are here to talk about the Defense authorization bill, this rather large bill that is at all of our desks. Much…

Mary L. Landrieu
Sen. Mary L. LandrieuD-LA · Jul 17, 2007

Mr. President, I see that many of my colleagues have come to the floor, so I will try to be brief in my remarks. But I would like to assure my good friend from Tennessee that this is not a stunt.…

Barbara A. Mikulski
Sen. Barbara A. MikulskiD-MD · Jul 17, 2007

Could I just offer an observation? We are not the minority, we are the majority. Yes. I am glad we got one of them. Maybe we can start a momentum here. Mr. President, I never thought I would see the…

Jim Bunning
Sen. Jim BunningR-KY · Jul 17, 2007

I object. Mr. President, I rise tonight to play my small part in this pointless political play put on by the Senate majority leader. It is an insult to the brave men and women in our Armed Forces and…

Mitch McConnell
Sen. Mitch McConnellR-KY · Jul 17, 2007

The following Senators are necessarily absent: the Senator from Mississippi (Mr. Cochran), the Senator from Oklahoma (Mr. Inhofe), and the Senator from Mississippi (Mr. Lott). Mr. President, our…

Bill Text

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Introduced in HouseIssued July 12, 2007

I

110th CONGRESS

1st Session

H. R. 3010

IN THE HOUSE OF REPRESENTATIVES

July 12, 2007

Mr. Johnson of Georgia (for himself, Mr. Barrow, Mr. Lewis of Georgia, Ms. Schakowsky, Mr. Braley of Iowa, Mr. Cummings, Mr. Gonzalez, Mr. Cohen, and Mr. Ellison) introduced the following bill; which was referred to the Committee on the Judiciary

A BILL

To amend chapter 1 of title 9 of United States Code with respect to arbitration.

1.

Short title

This Act may be cited as the Arbitration Fairness Act of 2007.

2.

Findings

The Congress finds the following:

(1)

The Federal Arbitration Act (now enacted as chapter 1 of title 9 of the United States Code) was intended to apply to disputes between commercial entities of generally similar sophistication and bargaining power.

(2)

A series of United States Supreme Court decisions have changed the meaning of the Act so that it now extends to disputes between parties of greatly disparate economic power, such as consumer disputes and employment disputes. As a result, a large and rapidly growing number of corporations are requiring millions of consumers and employees to give up their right to have disputes resolved by a judge or jury, and instead submit their claims to binding arbitration.

(3)

Most consumers and employees have little or no meaningful option whether to submit their claims to arbitration. Few people realize, or understand the importance of the deliberately fine print that strips them of rights; and because entire industries are adopting these clauses, people increasingly have no choice but to accept them. They must often give up their rights as a condition of having a job, getting necessary medical care, buying a car, opening a bank account, getting a credit card, and the like. Often times, they are not even aware that they have given up their rights.

(4)

Private arbitration companies are sometimes under great pressure to devise systems that favor the corporate repeat players who decide whether those companies will receive their lucrative business.

(5)

Mandatory arbitration undermines the development of public law for civil rights and consumer rights, because there is no meaningful judicial review of arbitrators’ decisions. With the knowledge that their rulings will not be seriously examined by a court applying current law, arbitrators enjoy near complete freedom to ignore the law and even their own rules.

(6)

Mandatory arbitration is a poor system for protecting civil rights and consumer rights because it is not transparent. While the American civil justice system features publicly accountable decision makers who generally issue written decisions that are widely available to the public, arbitration offers none of these features.

(7)

Many corporations add to their arbitration clauses unfair provisions that deliberately tilt the systems against individuals, including provisions that strip individuals of substantive statutory rights, ban class actions, and force people to arbitrate their claims hundreds of miles from their homes. While some courts have been protective of individuals, too many courts have upheld even egregiously unfair mandatory arbitration clauses in deference to a supposed Federal policy favoring arbitration over the constitutional rights of individuals.

3.

Definitions

Section 1 of title 9, United States Code, is amended—

(1)

by amending the heading to read as follows:

1.

Definitions

;

(2)

by inserting before Maritime the following:

As used in this chapter—

;

(3)

by striking Maritime transactions and inserting the following:

(1)

maritime transactions;

;

(4)

by striking commerce and inserting the following:

(2)

commerce

;

(5)

by striking , but nothing and all that follows through the period at the end, and inserting a semicolon; and

(6)

by adding at the end the following:

(3)

employment dispute, as herein defined, means a dispute between an employer and employee arising out of the relationship of employer and employee as defined by the Fair Labor Standards Act;

(4)

consumer dispute, as herein defined, means a dispute between a person other than an organization who seeks or acquires real or personal property, services, money, or credit for personal, family, or household purposes and the seller or provider of such property, services, money, or credit;

(5)

franchise dispute, as herein defined, means a dispute between a franchisor and franchisee arising out of or relating to contract or agreement by which—

(A)

a franchisee is granted the right to engage in the business of offering, selling, or distributing goods or services under a marketing plan or system prescribed in substantial part by a franchisor;

(B)

the operation of the franchisee’s business pursuant to such plan or system is substantially associated with the franchisor's trademark, service mark, trade name, logotype, advertising, or other commercial symbol designating the franchisor or its affiliate; and

(C)

the franchisee is required to pay, directly or indirectly, a franchise fee; and

(6)

pre-dispute arbitration agreement, as herein defined, means any agreement to arbitrate disputes that had not yet arisen at the time of the making of the agreement.

.

4.

Validity and enforceability

Section 2 of title 9, United States Code, is amended—

(1)

by amending the heading to read as follows:

2.

Validity and enforceability

,

(2)

by inserting (a) before A written;

(3)

by striking , save and all that follows through contract, and inserting to the same extent as contracts generally, except as otherwise provided in the title; and

(4)

by adding at the end the following:

(b)

No predispute arbitration agreement shall be valid or enforceable if it requires arbitration of—

(1)

an employment, consumer, or franchise dispute; or

(2)

a dispute arising under any statute intended to protect civil rights or to regulate contracts or transactions between parties of unequal bargaining power.

(c)

An issue as to whether this chapter applies to an arbitration agreement shall be determined by Federal law. Except as otherwise provided in this chapter, the validity or enforceability of an agreement to arbitrate shall be determined by the court, rather than the arbitrator, irrespective of whether the party resisting arbitration challenges the arbitration agreement specifically or in conjunction with other terms of the contract containing such agreement.

(d)

Nothing in this chapter shall apply to any arbitration provision in a collective bargaining agreement.

.

5.

Effective date

This Act, and the amendments made by this Act, shall take effect on the date of the enactment of this Act and shall apply with respect to any dispute or claim that arises on or after such date.