Determining the enforceability of mandatory class-action waiver provisions in arbitration clauses is not merely an academic exercise for those sheltered within ivory tower walls. Indeed, a number of important legal and public policy implications underlie such a determination.

In a recent decision, In re American Express Merchants Litigation, the 2nd U.S. Circuit Court of Appeals rendered a class-action waiver provision in the mandatory arbitration clause of a commercial contract between a charge card carrier and its merchants unenforceable.

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