S.3169

New Jersey S3169 invalidates arbitration agreements if applied to disputes unrelated to the contract terms.

New Jersey S3169 amends the state's arbitration laws to invalidate certain arbitration agreements. Specifically, it states that an arbitration agreement in a consumer-business contract is not valid if used for disputes unrelated to the contract terms and would otherwise be invalidated by legal or equitable defenses. Courts will determine if an arbitration agreement exists or if a controversy is subject to arbitration, while arbitrators will decide if conditions for arbitrability are met and if the contract is enforceable.