jams
Definition
JAMS (originally called Judicial Arbitration and Mediation Services) is a private company that helps businesses resolve disputes outside of a courtroom through arbitration or mediation. Think of it as a private court system for hire, where trained neutrals help parties settle their differences faster and more privately than going through the public court system. Many contracts require disputes to go through JAMS instead of a traditional court.
Example
You sign a contract with a software vendor that includes a clause saying any disputes must be resolved through JAMS arbitration, so when they overbill you, you file a claim with JAMS rather than suing them in court.
Watch Out
When you sign a contract requiring JAMS arbitration, you are typically giving up your right to sue in court or join a class action lawsuit, which can work against you if your dispute involves a small amount of money that would cost more to arbitrate than it is worth.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.