Amended in Senate March 29, 2016

Senate BillNo. 1241


Introduced by Senator Wieckowski

February 18, 2016


An act tobegin delete amend Section 1286.2 of the Code of Civil Procedure, relating to arbitration.end deletebegin insert add Section 1799.208 to the Civil Code, relating to consumer contracts.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 1241, as amended, Wieckowski. begin deleteArbitration awards. end deletebegin insertConsumer contracts.end insert

begin insert

Existing law, the Consumer Contract Awareness Act, defines a consumer contract as a writing prepared by a seller that provides for the sale or lease of goods or services for personal, family, or household purposes, among other provisions. The act require a seller to deliver a copy of a consumer contract to the consumer at the time the contract is signed, and it prohibits the waiver of any provisions of the act.

end insert
begin insert

This bill would, in addition, provide that a provision in a consumer contract that purports to designate the venue in which a controversy arising from the consumer contract is litigated, or the choice of law to be applied, is voidable by the consumer, with respect to a controversy arising in California, if the provision would deprive the consumer of the protection of California law or require the consumer to litigate the controversy out of state.

end insert
begin delete

Existing law establishes standards for arbitration, and requires the court to vacate an arbitration award if it makes certain findings.

end delete
begin delete

This bill would make a technical, nonsubstantive change to that provision.

end delete

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTIONend insertbegin insert 1.end insert  

end insert

begin insertSection 1799.208 is added to the end insertbegin insertCivil Codeend insertbegin insert, to
2read:end insert

begin insert
3

begin insert1799.208.end insert  

(a) Notwithstanding any other law, a provision in
4a consumer contract, as defined by subdivision (b) of Section
51799.201, that purports to designate the venue in which a
6controversy arising from the consumer contract may be litigated,
7or the choice of law to be applied, is voidable by the consumer if
8the provision would do either of the following:

9
(1) Deprive the consumer of the protection of California law
10with respect to a controversy arising in California.

11
(2) Require the consumer to litigate outside of California a
12claim arising in California.

13
(b) For purposes of this section, litigation includes arbitration.

end insert
begin delete
14

SECTION 1.  

Section 1286.2 of the Code of Civil Procedure
15 is amended to read:

16

1286.2.  

(a) Subject to Section 1286.4, the court shall vacate
17the award if the court determines any of the following:

18(1) The award was procured by corruption, fraud or other undue
19means.

20(2) There was corruption in an arbitrator.

21(3) The rights of the party were substantially prejudiced by
22misconduct of a neutral arbitrator.

23(4) The arbitrators exceeded their powers and the award cannot
24be corrected without affecting the merits of the decision upon the
25controversy submitted.

26(5) The rights of the party were substantially prejudiced by the
27refusal of the arbitrators to postpone the hearing upon sufficient
28cause being shown therefor or by the refusal of the arbitrators to
29hear evidence material to the controversy or by other conduct of
30the arbitrators contrary to the provisions of this title.

31(6) An arbitrator making the award either: (A) failed to disclose
32within the time required for disclosure a ground for disqualification
33of which the arbitrator was then aware; or (B) was subject to
34disqualification upon grounds specified in Section 1281.91 but
35failed upon receipt of timely demand to disqualify himself or
P3    1herself as required by that provision. However, this subdivision
2does not apply to arbitration proceedings conducted under a
3collective bargaining agreement between employers and employees
4or between their respective representatives.

5(b) Petitions to vacate an arbitration award pursuant to Section
61285 are subject to the provisions of Section 128.7.

end delete


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