New Jersey 2020-2021 Regular Session Status: Introduced

A5240 —

  1. 1
    Introduced
  2. 2
    In Committee
  3. 3
    Passed General Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2020-2021 Regular Session. It reached “Introduced” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Identical bill: S1190 —

Bill Text

What changed in the latest version

16 added · 41 removed

Plain-language change summary

The amendment to Assembly Bill No. 5240 adds a specific provision stating that consumer contracts cannot require disputes to be resolved in a venue outside of New Jersey, unless the requirement is waived with the advice of legal counsel. This change clarifies that New Jersey residents must resolve consumer disputes within the state, ensuring they have access to local courts and legal support.

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A5240 ASSEMBLY, No.
A5240 ACO Statement 3/8/21 ASSEMBLY CONSUMER AFFAIRS COMMITTEE   STATEMENT TO   ASSEMBLY, No.
5240 STATE OF NEW JERSEY 219th LEGISLATURE   INTRODUCED JANUARY 11, 2021     Sponsored by:
5240   STATE OF NEW JERSEY   DATED:
Assemblyman  JOHN F.
 MARCH 8,         The Assembly Consumer Affairs Committee reports favorably Assembly Bill No.
MCKEON District 27 (Essex and Morris) Assemblyman  PAUL D.
5240.
MORIARTY District 4 (Camden and Gloucester) Assemblywoman  ANNETTE QUIJANO District 20 (Union)         SYNOPSIS      Limits forum of consumer contract disputes to New Jersey.
      As reported by the committee, this bill prohibits terms and conditions in a consumer contract that require the dispute be resolved in a venue, forum, or jurisdiction outside of the State of New Jersey.  This requirement could only be waived upon the advice of counsel.
  CURRENT VERSION OF TEXT      As introduced.
   An Act concerning the forum of certain consumer contracts and supplementing P.L.1980, c.125 (C.56:12-1 et seq.).
       Be It Enacted by the Senate and General Assembly of the State of New Jersey:
       1.    A term or condition in a consumer contract concerning venue, forum, or jurisdiction involving a resident of this State is valid only if that term or condition requires that the dispute is resolved within the State of New Jersey.
This requirement may only be waived upon the advice of counsel as evidenced by counsel’s signature on the contract.
     Nothing in this section shall apply to insurance companies duly licensed or authorized to transact business under the insurance laws of this State, or to any eligible surplus lines insurers allowed to conduct business in this State under section 11 of P.L.1960, c.32 (C.17:22-6.45).
       2.    This act shall take effect on the first day of the fourth month next following enactment and apply to consumer contracts executed on or after that date.
    STATEMENT        This bill prohibits terms and conditions in a consumer contract that require the dispute be resolved in a venue, forum, or jurisdiction outside of the State of New Jersey.  This requirement could only be waived upon the advice of counsel.
      The bill also exempts insurance companies duly licensed or authorized to transact business under the insurance laws of this State and eligible surplus lines insurers from the consumer contract requirements under the bill.  Consequently, these insurance companies and eligible surplus lines insurers could contractually require consumers to arbitrate disputes outside of this State.
      The bill also exempts insurance companies duly licensed or authorized to transact business under the insurance laws of this State and eligible surplus lines insurers from the consumer contract requirements under the bill.  Consequently, these insurance companies and eligible surplus lines insurers could contractually require consumers to arbitrate disputes outside of this State..
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Sponsorship breakdown

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0 sponsors · 0 co-sponsors · 120 not signed on

Sponsors (0)

None.

Co-sponsors (0)

None.

Not signed on (120)

120 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

What is the current status of A5240?
This bill died with 2020-2021 Regular Session. It reached “Introduced” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track A5240?
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