A couple who was seriously injured in a car accident involving an Uber driver lost their bid to take legal action against the company in court. The New Jersey court of appeals ruled in favor of Uber, stating that the arbitration provision in its terms and conditions was valid and enforceable. The couple's daughter had previously clicked "agree" to the updated terms of use while ordering food on the Uber Eats app. The ruling has raised concerns about the power of large corporations and the impact of hidden contractual language on consumer rights.
Uber Accident Victims Denied Lawsuit Due to Arbitration Clause
Background In September 2022, a New Jersey court of appeals ruled in favor of Uber in a case brought by a couple who were seriously injured in a car accident involving an Uber driver. The couple argued that Uber was liable for their injuries because the driver was negligent. However, the court ruled that the couple had agreed to an arbitration provision in Uber's terms and conditions when their daughter clicked "agree" while ordering food on the Uber Eats app. This provision requires disputes to be resolved through arbitration instead of court.
The Court's Reasoning The court found that the arbitration provision was valid and enforceable. The court noted that the couple's daughter had the opportunity to review the terms of service before clicking "agree." The court also found that the arbitration provision was not unconscionable, as it did not deprive the couple of their fundamental rights.
Consumer Rights Concerns The court's ruling has raised concerns about the power of large corporations and the impact of hidden contractual language on consumer rights. Critics argue that arbitration provisions can be used to unfairly deprive consumers of their right to seek redress in court. They also argue that consumers may not be aware of these provisions when they agree to terms of service online.
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