Supreme Court ruling leaves Samsung unable to force customers into arbitration to settle disputes

The U.S. Supreme Court has ruled against Samsung by letting a lower court ruling stand. The ruling prevents Samsung from using the warranty that it included inside the boxes containing Samsung Galaxy S handsets, to force its customers into arbitration to settle any disputes. Companies favor forced arbitration because it allows them to set up the rules including how the arbitrator is selected. In addition, most arbitration agreements prevent the customer from starting a class action suit. Most arbitration clauses are written to limit the number of options an angry customer has against a company.

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