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Consumer Arbitration Agreements Act 1988

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1Arbitration agreements

(1)Where a person (referred to in section 4 below as “the consumer”) enters into a contract as a consumer, an agreement that future differences arising between parties to the contract are to be referred to arbitration cannot be enforced against him in respect of any cause of action so arising to which this section applies except—

(a)with his written consent signified after the differences in question have arisen; or

(b)where he has submitted to arbitration in pursuance of the agreement, whether in respect of those or any other differences; or

(c)where the court makes an order under section 4 below in respect of that cause of action.

(2)This section applies to a cause of action—

(a)if proceedings in respect of it would be within the jurisdiction of a county court; or

(b)if it satisfies such other conditions as may be prescribed for the purposes of this paragraph in an order under section 5 below.

(3)Neither section 4(1) of the [1950 c. 27.] Arbitration[1937 c. 8 (N.I.).] Act 1950 nor section 4 of the Arbitration Act (Northern Ireland) 1937 (which provide for the staying of court proceedings where an arbitration agreement is in force) shall apply to an arbitration agreement to the extent that it cannot be enforced by virtue of this section.

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