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Arbitration Agreements

Volume 127: debated on Friday 12 February 1988

The text on this page has been created from Hansard archive content, it may contain typographical errors.

I beg to move amendment No. 1, in page 1, leave out from beginning of line 5 to 'except' in line 6 and insert—

(1) Where a person (referred to in section (Power of court to disapply section I where no detriment to consumer) 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'.

With this it will be convenient to consider the following: Amendment No. 4, in page 1, line 9, at end add

'whether in respect of those or any other differences; or
(c) where the court makes an order under section (Power of court to disapply section 1 where no detriment to consumer) 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 (Orders adding to the causes of action to which section 1 applies) below.
  • (3) Neither section 4(1) of the Arbitration 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.'
    Amendment No. 5, in page 1, line 9, at end add
    '(c) by leave of the court.'
    Amendment No. 7, in clause 3, page 1, leave out line 19 and insert—
    '(1) For the purposes of section 1 above, a person enters into a contract "as a consumer" if—'.

    It may be for the convenience of the House if I state that the effect of the amendments will be to reduce, not enhance, the scope of the Bill as agreed with the Department of Trade and Industry. Hon. Members will recognise the somewhat heavy hand of the Government draftsman, who has refined the Bill, particularly as it relates to Scotland. The amendments do not include anything that was not discussed and received substantial agreement on Second Reading on 29 January.

    Amendment agreed to.

    Amendments made: No. 2, in page 1, line 7, leave out `differences' and insert 'the differences in question'.

    No. 3, in page 1, line 8, leave out 'himself had recourse' and insert 'submitted'.

    No. 4, in page 1, line 9, at end add

    'whether in respect of those or any other differences; or
    (c) where the court makes an order under section (Power of court to disapply section 1 where no detriment to consumer) 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 (Orders adding to the causes of action to which section 1 applies) below.
  • (3) Neither section 4(1) of the Arbitration 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.'.—[Mr. Pawsey.]

    Clause 1, as amended, ordered to stand part of the Bill.

    Clause 2 ordered to stand part of the Bill.