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The Anderson Report |
Attention:
If you are being demanded to arbitrate by a corporation, and/or you have signed a contract with an arbitration clause in the past, these are the laws you need to be aware of. Your attorney is committing fraud by not explaining this provision to you. He could then be held liable for all damages.
Title 9 USC The Federal Arbitration Act
Section 2. Validity, irrevocability, and enforcement of agreements to arbitrate
A written provision in any maritime transaction or a contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of such contract or transaction, or the refusal to perform the whole or any part thereof, or an agreement in writing to submit to arbitration an existing controversy arising out of such a contract, transaction, or refusal, shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.
It is true, the arbitration agreement is binding providing the contract is not void. Fraud voids contracts. Has the corporation defrauded you or others? Section 4 is to put that on trial.
Section 4. Failure to arbitrate under agreement; petition to United States court having jurisdiction for order to compel arbitration; notice and service thereof; hearing and determination
A party aggrieved by the alleged failure, neglect, or refusal of another to arbitrate under a written agreement for arbitration may petition any United States district court which, save for such agreement, would have jurisdiction under Title 28, in a civil action or in admiralty of the subject matter of a suit arising out of the controversy between the parties, for an order directing that such arbitration proceed in the manner provided for in such agreement. Five days' notice in writing of such application shall be served upon the party in default. Service thereof shall be made in the manner provided by the Federal Rules of Civil Procedure. The court shall hear the parties, and upon being satisfied that the making of the agreement for arbitration or the failure to comply therewith is not in issue, the court shall make an order directing the parties to proceed to arbitration in accordance with the terms of the agreement. The hearing and proceedings, under such agreement, shall be within the district in which the petition for an order directing such arbitration is filed. If the making of the arbitration agreement or the failure, neglect, or refusal to perform the same be in issue, the court shall proceed summarily to the trial thereof. If no jury trial be demanded by the party alleged to be in default, or if the matter in dispute is within admiralty jurisdiction, the court shall hear and determine such issue. Where such an issue is raised, the party alleged to be in default may, except in cases of admiralty, on or before the return day of the notice of application, demand a jury trial of such issue, and upon such demand the court shall make an order referring the issue or issues to a jury in the manner provided by the Federal Rules of Civil Procedure, or may specially call a jury for that purpose. If the jury find that no agreement in writing for arbitration was made or that there is no default in proceeding thereunder, the proceeding shall be dismissed. If the jury find that an agreement for arbitration was made in writing and that there is a default in proceeding thereunder, the court shall make an order summarily directing the parties to proceed with the arbitration in accordance with the terms thereof.
Rule 1: DO NOT AGREE TO ARBITRATE even if you have signed a contract or an agreement in the past!
Rule 2: Demand a jury trial to challenge the agreement.
It would certainly appear the
legislators know these people are out there. Large numbers of people are being
led like lambs to the slaughter by their own lawyers. It is evident that
Corporations like Amway/Quixtar and the lawyers (for both sides) are concealing
this option and ushering you directly into this arbitration trap. Why?? DO
THE MATH $$.
This provision (Sec. 4) is their responsibility to comply with to acquire a valid award. If they do not, then Section 10 to the rescue.
Section 10. Same; vacation; grounds; rehearing
(a) In any of the following cases the United States court in and for the district wherein the award was made may make an order vacating the award upon the application of any party to the arbitration
(1) Where the award was procured by corruption, fraud, or undue means.
(2) Where there was evident partiality or corruption in the arbitrators, or either of them.
(3) Where the arbitrators were guilty of misconduct in refusing to postpone the hearing, upon sufficient cause shown, or in refusing to hear evidence pertinent and material to the controversy; or of any other misbehavior by which the rights of any party have been prejudiced.
(4) Where the arbitrators exceeded their powers, or so imperfectly executed them that a mutual, final, and definite award upon the subject matter submitted was not made.
Remember: The avoidance or concealment of the provision in Section 4 (jury trial) is fraud enough to vacate any award the arbitration produced.
SMILE--YOU ARE FREE!!
Always remember:
Wisdom produced salvation
Education produced the Atom Bomb