An arbitration clause in a consumer contract is not enforceable unless it clearly indicates that the plaintiff is giving up the right to go to court, a unanimous New Jersey Supreme Court ruled Sept. 23.

Arbitration is favored under both federal and state law but that favored status “does not mean that every arbitration clause, however phrased, will be enforceable,” Justice Barry Albin wrote in Atalese v. U.S. Legal Services Group.

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