Creates provisions relating to forum selection agreements
The bill significantly impacts how contracts related to dispute resolution are structured in Missouri, particularly enhancing consumer protections. By mandating that an option to opt-out of forum selection clauses be included and that it must be clearly presented and signed, the law aims to prevent unilateral decisions by businesses that may disadvantage consumers in legal disputes. This shift seeks to empower consumers and may also change the dynamics in how companies draft contracts, as the added requirements impose greater clarity and accountability.
House Bill 1520 aims to amend chapter 407 of the Revised Statutes of Missouri by introducing provisions related to forum selection agreements. This legislation requires that any contractual agreements that include provisions for selecting a forum for dispute resolution must adhere to new stipulations. Specifically, the bill mandates that such provisions can only be valid if they are agreed upon by both parties through a separate written document. This document must meet specific criteria including a 16-point font size for readability and must require hand signatures from both involved parties.
Although the bill appears to enhance consumer rights, it may also face criticism from business groups that see the measures as creating additional burdens in drafting contracts. Businesses may argue that the requirements for separate documentation and specific font sizes complicate the contract negotiation process. Thus, stakeholders may express opposing views where some advocate for consumer rights while others stress the need for business-friendly regulations that allow flexibility in legal agreements.