Consumer Arbitration Law and Legal Definition

The term consumer arbitration is defined as arbitration conducted under a pre-dispute arbitration provision contained in a contract that meets the following criteria:

the contract is with a consumer party, as defined in these standards;

the contract was drafted by or on behalf of the non-consumer party; and

the consumer party was required to accept the arbitration provision in the contract.

Consumer arbitration excludes arbitration proceedings conducted under or arising out of public or private sector labor-relations laws, regulations, charter provisions, ordinances, statutes, or agreements [Cal Rules of Court, Standard 2 (d)].