SAN FRANCISCO — In another victory for companies favoring arbitration, the U.S. Supreme Court on Monday held that DirecTV customers can’t use California law as a way around the company’s arbitration agreement.
A divided Supreme Court found the arbitration agreement binding, even though the contract specified that it was unenforceable if the “law of your state” made class arbitration waivers unenforceable. The parties cannot choose to entirely avoid pro-arbitration federal law in favor of more plaintiff-friendly state law, the justices ruled.
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