Is your Seventh Amendment Right in danger

Imagine ordering a pizza through an app, only to discover months later that this simple act has stripped you of your constitutional right to a jury trial. Sound far-fetched? Unfortunately, in today’s digital age, this scenario is becoming increasingly common. As consumers, we click “agree” on terms of service without a second thought, unknowingly signing away fundamental legal protections. This quiet erosion of rights is happening through the widespread use of arbitration clauses, a legal tool that big companies are wielding with alarming effectiveness.

In this article, we’ll explore how arbitration clauses are being used to bypass the Seventh Amendment, which guarantees your right to a jury trial in civil cases. We’ll delve into shocking examples from major corporations like Disney and Uber, where ordering a streaming service or food delivery could leave you powerless in the face of serious injuries. More importantly, we’ll discuss why this matters to you, how it’s changing the landscape of consumer rights, and what you can do to protect yourself in an era where your constitutional rights might be just one click away from disappearing.

Arbitration Clauses: A New Norm in Consumer Agreements

Arbitration agreements have become a standard part of user terms for many companies, including major corporations like Uber and Disney. By agreeing to these terms, often buried deep in lengthy service agreements, consumers are waiving their rights to sue these companies in court. Instead, they must settle disputes through binding arbitration, a process that overwhelmingly favors corporations over individuals. And most people have no idea this is happening.

As pointed out in a recent video by Attorney Ted Sink, “You are at risk of losing your Seventh Amendment rights, your constitutional right to a jury,” just by signing up for services like Disney+ or Uber Eats. Sink emphasizes that this isn’t just about entertainment subscriptions but about something far more significant: your legal rights. The arbitration clauses found in these agreements could prevent you from having a jury of your peers hear your case if you’re ever injured or wronged by the company. Instead, you’ll be forced into an arbitration process controlled by the very entity you’re going up against.

Disney’s Arbitration Controversy: From Streaming to Theme Park Injuries

Take the case of Disney, where signing up for its popular streaming service, Disney+, could unknowingly bind users to arbitration clauses. The implications of this go far beyond watching shows like *The Mandalorian*. Imagine visiting one of Disney’s theme parks, getting injured on a ride, and then discovering that you can’t sue Disney in court because you agreed to their arbitration clause when you signed up for their streaming service. This might sound far-fetched, but it’s a very real possibility.

In a recent lawsuit reported by CNN, a family attempted to sue Disney for wrongful death, only to find themselves facing an arbitration clause they unknowingly agreed to when signing up for Disney+. According to the report, “Families may not realize that agreeing to seemingly unrelated terms of service for Disney’s streaming service could prevent them from seeking justice in the event of a serious injury or death at one of their parks”. This sets a dangerous precedent where corporations can extend their arbitration agreements into entirely unrelated aspects of their business.

The Uber Eats Case: A Pizza Order That Ended in a Court Battle

If the Disney case seems complex, Uber has taken this to an entirely new level of absurdity. In a recent case out of New Jersey, a family found themselves blocked from suing Uber after a serious car accident — all because their daughter had ordered a pizza through Uber Eats. Yes, you read that correctly.

As Sink explains in his video, “Now Uber is saying a little girl ordered a pizza so her parents can’t sue when they get in an Uber wreck. They can’t have a jury trial. Instead, the only thing they can do is go through binding arbitration, according to the Court of Appeals for New Jersey”. What is the logic behind this ruling? The daughter’s acceptance of Uber’s terms of service for ordering food also applied to the family’s use of Uber’s rideshare services. This ruling means that by accepting Uber Eats’ terms, the family unwittingly signed away their right to sue Uber in court if something went wrong during a ride.

This case highlights a key problem with arbitration clauses: they’re often hidden in fine print, lumped together in terms of service agreements that most people never read. More importantly, they can apply far beyond the context in which they were originally agreed upon, as seen in the Uber case.

Why Arbitration Favors Corporations

At its core, arbitration is a private dispute resolution process where a neutral third party, known as an arbitrator, decides the outcome of the case. However, unlike a jury trial, arbitration is not a public process. There is no judge, no jury of peers, and often no meaningful appeal process. This lack of transparency often benefits corporations, which can hire arbitrators that they have used in past cases, creating a potential bias in their favor.

A study conducted by the Economic Policy Institute found that “employees win less often in arbitration than in court, and when they do win, the awards they receive are significantly smaller”.  This is especially concerning when arbitration agreements are applied to personal injury cases, where the stakes are high, and individuals are often up against well-funded corporate legal teams.

The Constitutional Right at Risk

At the heart of this issue is the Seventh Amendment, which guarantees the right to a jury trial in civil cases. This right is a cornerstone of the American legal system, intended to ensure that ordinary people have a voice in disputes, especially when going up against powerful entities like corporations. Arbitration clauses are effectively eroding this right, replacing it with a system that’s stacked in favor of the wealthy and powerful.

Attorney Ted Sink calls attention to this issue in his video, stating that “real people, which is what our constitutional system is founded on… can’t have a jury of their peers listen to their injuries and take care of them”. This erosion of rights should be alarming to anyone who values fairness and justice. When individuals can no longer take their cases before a jury, they lose the chance to have their voices heard in a meaningful way.

How to Protect Your Rights

So, what can you do to protect yourself from unknowingly signing away your Seventh Amendment rights? First and foremost, it’s essential to read the fine print whenever you agree to a service’s terms and conditions, particularly with large corporations. While this may seem tedious, it could be the difference between having your day in court and being forced into arbitration.

Beyond that, there is a growing movement to push for legislative reform. Lawmakers are beginning to recognize the dangers of arbitration clauses and are proposing changes that would limit their reach. Sink urges people to “contact your state senators, congressmen. Make sure that you have the right… 7th Amendment constitutional right protected”. Public pressure could lead to laws that protect consumers from unknowingly signing away their rights in everyday transactions.

Conclusion: The Hidden Dangers of Arbitration Clauses

The rise of arbitration clauses in consumer agreements is a troubling trend that threatens one of the most fundamental rights in the U.S. Constitution. As cases involving Disney and Uber have shown, these clauses can have far-reaching consequences, preventing individuals from seeking justice in court. While arbitration may offer a faster and cheaper alternative to litigation, it often benefits corporations at the expense of ordinary people.

It’s crucial to stay informed about the agreements you’re entering into and to advocate for your rights. Only through awareness and legislative action can we hope to preserve the right to a jury trial for future generations.

Attorney | Founder at The Ted Law firm | Website | + posts

Attorney Ted Sink, founder of The Ted Law Firm, is a Yale, Stanford Business School, and Charleston School of Law graduate and former marketing executive who built a 7-figure law practice, earning millions for his clients. With experience in both law and advertising, Ted has been recognized in Forbes, Entrepreneur, and the ABA Journal. He speaks at industry conferences on marketing and law firm management, sharing insights from his unique background to help other firms grow. When not working, Ted enjoys traveling, diving, and dog-sitting golden retrievers.

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