An act to add Section 1670.15 to the Civil Code, relating to contracts.
Summary
SB 82 adds Section 1670.15 to the Civil Code to regulate dispute resolution provisions in “consumer use agreements,” defined broadly as contracts between a person and a consumer for the use, receipt, or enjoyment of goods, services, money, or credit. The bill limits the scope of dispute resolution terms and conditions in those agreements to matters involving the use, payment, or provision of the specific good, service, money, or credit covered by the contract.
The bill also declares any waiver of these protections void and unenforceable as contrary to public policy, and directs that the new section be liberally construed to protect consumers. It further states that the new rules are cumulative and do not displace other legal duties, rights, or remedies under existing law.
Impact
SB 82 amends California contract law by creating a new Civil Code provision that restricts how dispute resolution clauses may be drafted in consumer-facing contracts. It affects businesses and other contracting parties that use consumer use agreements, and it strengthens consumer protections by preventing contractual waivers of the statute’s limits. The bill is cumulative with existing law, meaning it adds to rather than replaces other consumer protection rules governing contracts, arbitration-related terms, and dispute resolution provisions.
Sentiment
The bill appears to have enjoyed generally favorable support as it moved through the Legislature, passing multiple committee and floor votes with clear majorities and ultimately being chaptered into law. The vote history suggests broad acceptance of the bill’s consumer-protection purpose, though not unanimous support. No committee transcript was provided, so the available record shows support through votes rather than detailed debate.
Contention
The main point of contention appears to have been the bill’s effect on contract drafting and dispute resolution terms in consumer agreements, particularly for businesses that may rely on broader or more standardized clauses. Opposition, where present, likely centered on limiting contractual freedom and the potential compliance burden on companies. Supporters, by contrast, appear to have viewed the measure as a consumer-protection safeguard ensuring dispute resolution provisions stay tied to the actual transaction and cannot be waived away.
An act to add amend Section 12405 to 12203 of the Public Contract Code, and to amend Sections 42920 and 42926 of the Public Resources Code, relating to solid waste.
Professions and Businesses; repeal Chapter 14, relating to electrical contractors, plumbers, conditioned air contractors, low voltage contractors, and utility contractors and enact a new Chapter 14