SF 4289
Introduction - 94th Legislature (2025 - 2026)
Posted on 04/08/2026 09:37 a.m.
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A bill for an act
relating to civil law; requiring arbitration agreements to be made after a consumer
transaction; requiring arbitration agreements to be clear and conspicuous; proposing
coding for new law in Minnesota Statutes, chapter 325D.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
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[325D.485] OFFER OF ARBITRATION; TIMING; SEPARATE
AGREEMENT.
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new text begin Subdivision 1. new text end
new text begin Definitions. new text end
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(a) For purposes of this section, the following terms have
the meanings given.
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(b) "Arbitration agreement" or "agreement to arbitrate" means a clause or contract that
limits a party's ability to resolve disputes through a court, jury trial, or class action.
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(c) "Clear and conspicuous" has the meaning given in section 325G.56, subdivision 3.
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(d) "Consumer" means an individual who seeks or acquires, by purchase or lease, a good
or service for any purpose.
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new text begin Subd. 2. new text end
new text begin Timing of offer; separate agreement. new text end
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A person must not require a consumer
to enter into an arbitration agreement before or during the sale of a good or service. A person
may enter into an arbitration agreement with a consumer after the sale of a good or service
if the agreement to arbitrate is clear and conspicuous and separate from other general terms
related to the sale of the good or service.
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new text begin Subd. 3. new text end
new text begin Void provisions. new text end
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The following provisions are contrary to public policy and
are void and unenforceable:
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(1) an agreement or provision of an agreement that violates subdivision 2; and
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(2) a waiver of the requirements of this section.
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new text begin Subd. 4. new text end
new text begin Severability. new text end
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A provision of an agreement that violates this section must be
severed from the other provisions of the agreement to the extent that the provision is void
and unenforceable. The fact that the provision is void and unenforceable does not affect the
other provisions of the agreement.
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new text begin EFFECTIVE DATE. new text end
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This section is effective August 1, 2026, and applies to agreements
executed on or after that date.
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