A “Sample Letter To Opt Out Of Arbitration” helps you decline mandatory arbitration. Companies often include these clauses in contracts. You might need this letter after starting a new job or buying a product. It lets you keep your right to sue in court.
Need to write this letter? Don’t worry. We’ve got you covered.
This article provides sample letters. Use them as templates. Tailor them to your specific situation. Make opting out of arbitration easy.
Sample Letter To Opt Out Of Arbitration
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Email Address]
[Your Phone Number]
[Date]
[Company Name]
[Company Address]
[Company City, State, Zip Code]
**Subject: Opt-Out of Arbitration Agreement**
Dear [Company Contact Person or Department],
This letter is to formally notify you of my decision to opt out of the arbitration agreement, as permitted by the terms outlined in the agreement.
I am opting out of arbitration concerning [mention the specific agreement, contract, or policy, e.g., “my employment agreement dated January 1, 2023”].
I understand my right to opt out and I am exercising that right within the specified timeframe.
Please confirm receipt of this opt-out notice.
Sincerely,
[Your Signature]
[Your Typed Name]
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How to Write Letter To Opt Out Of Arbitration
Subject Line: Concision is Key
- Craft a subject line that is both succinct and unambiguous.
- Examples: “Opt-Out of Arbitration Clause – [Your Name]” or “Arbitration Agreement Rejection – Account [Your Account Number]”. Avoid ambiguity.
- A clear subject line ensures your missive doesn’t languish unread.
Salutation: A Formal Overture
- Address the recipient with appropriate formality. “To Whom It May Concern” is acceptable if a specific contact isn’t known, but strive for personalization.
- If possible, use “Dear [Name of Contact Person],” followed by a colon. Research the correct recipient’s name to evince diligence.
- Avoid overly casual greetings.
Body Paragraph 1: Declarative Statement of Intent
- Begin with an unequivocal declaration of your intent to opt out of the arbitration agreement.
- Example: “This letter serves as formal notification of my decision to opt out of the arbitration clause outlined in the agreement dated [Date of Agreement].”
- Reference the specific agreement by name and date. This is paramount.
Body Paragraph 2: Identification and Substantiation
- Provide your identifying information, including your full name, address, account number (if applicable), and any other pertinent details that will facilitate the recipient’s ability to locate your record.
- Include a succinct statement that you understand your right to opt out and are exercising that right within the stipulated timeframe.
- Verbiage like, “I am exercising my right to opt out per the terms outlined in section [Section Number] of the aforementioned agreement” bolsters your position.
Body Paragraph 3: Unequivocal Rejection and Reservation of Rights
- Reiterate your complete and utter rejection of the arbitration clause.
- Include a sentence reserving all rights and remedies available to you under the law. This safeguards your legal options.
- Example: “I expressly reject the arbitration clause in its entirety and reserve all rights and remedies available to me at law or in equity.”
Closing: Courteous Finality
- End with a polite but firm closing.
- Acceptable options include “Sincerely,” “Respectfully,” or “Regards,” followed by a comma.
- Avoid overly effusive or apologetic closings.
Signature and Delivery: Validation and Verification
- Sign your name legibly below the closing.
- Print your name beneath your signature for clarity.
- Send the letter via certified mail with return receipt requested. This provides irrefutable proof of delivery. Keep a copy for your records.
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Frequently Asked Questions: Opting Out of Arbitration
This section addresses common inquiries regarding opting out of arbitration agreements. Understanding your rights is crucial for informed decision-making.
What is an arbitration agreement?
An arbitration agreement is a contractual clause where you agree to resolve disputes through arbitration rather than through the court system.
Why would I want to opt out of arbitration?
Opting out allows you to retain the right to sue in court, potentially offering broader discovery and appeal rights compared to arbitration.
Is it always possible to opt out of arbitration?
No, the ability to opt out depends on the specific terms of the agreement and applicable state and federal laws.
What is the deadline for opting out of arbitration?
The deadline is typically specified in the arbitration agreement, often within 30 days of accepting the terms. Review your agreement carefully.
Where do I send my opt-out letter?
Send the letter to the address specified in the arbitration agreement for opting out. Use certified mail with return receipt requested for proof of delivery.