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arbitration agreements

By McCarthy Tétrault LLP | 3 Minutes Read May 31, 2019

A class divided can stand – Supreme Court of Canada holds that businesses cannot piggyback on consumers to escape arbitration agreements

By a 5-4 majority, the Supreme Court of Canada reversed a line of Ontario cases and held that s. 7(5) of province’s Arbitration Act, 1991 does not give courts discretion to decline to enforce arbitration agreements between businesses, even when those businesses are members of a class alongside consumers under the Class Proceedings Act, 1992.

Article by McCarthy Tétrault LLP / Business, Finance and Accounting / arbitration, Arbitration Act, arbitration agreements, Class Proceedings Act, consumer contracts, consumer protection, Consumer Protection Act, freedom of contract

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